Hong Kong is moving closer to allowing companies with a dual-class share structure to list on the stock exchange after the Securities and Futures Commission (SFC) backed plans for a public consultation on creating a third board aimed at technology start-ups and ‘new economy’ firms, which would for the first time permit dual-share listings. The long-standing ban in Hong Kong is widely seen as a barrier to potentially lucrative initial public offerings (IPOs), particularly by technology firms. Many global internet firms, such as Google, trade their shares using a dual-class structure, which is permitted in the United States. It is favored by many start-ups because their founders often hold only small stakes but want to keep control. Many observers believe Hong Kong’s stock exchange has missed out on billions in annual listing and trading fees due to its refusal to allow such listings on the grounds that they would violate the long-held principle of “one share, one vote”. Alibaba Group opted to list in New York rather than Hong Kong in 2014 after the SFC refused its request to allow what it considered a dual-class structure. Market players have mixed views on the issue, with listed firms and investment bankers preferring a dual-share structure while fund managers generally oppose it as they believe it is not fair to all investors, the South China Morning Post reports.