The Australian Securities Exchange (ASX) is considering allowing dual-class share structures for the first time in a bid to revitalize the country’s sluggish listings market, according to ASX executive Blair Beaton.
Beaton, the group executive of listings at ASX, highlighted that the absence of dual-class shares has placed Australia at a disadvantage compared to global financial hubs such as the United States and the United Kingdom. While dual-class shares are widely used in the US, the UK’s Financial Conduct Authority (FCA) has recently updated its regulations to encourage more such listings.
Balancing Investor Sentiment and Market Growth
“The ASX is the only major exchange that does not allow dual-class shares, and opinions on the matter vary,” Beaton told Reuters on Wednesday. “Some investors may not favor it, while others argue that if an Australian company seeks an overseas listing due to local restrictions, they would still invest in it on a foreign exchange.”
The potential policy shift is part of ASX’s broader effort to enhance its appeal as a listing venue within the Asia-Pacific region and remain competitive on the global stage.
Encouraging Discussion on Market Reforms
Beaton emphasized that opening a discussion on dual-class shares is timely, as ASX aims to align itself with international markets and attract high-growth companies.
“We want the ASX to be the most attractive listing venue in the region and one that is globally competitive,” he said.
The move signals a willingness to modernize Australia’s equity market framework, though any changes would likely require input from regulators, investors, and corporate stakeholders before implementation.
Related topics:
Canola Prices Plunge After China Implements Retaliatory Tariffs on Canada
Oil Prices Drop Amid Weak Chinese Data and Risk-Off Sentiment
