Comment on Hong Kong rethinks rules after Alibaba IPO loss

Hong Kong rethinks rules after Alibaba IPO loss

[...] Alibaba settled earlier this year on New York for its stock market listing after Hong Kong refused to make an exception for the company's partnership system in which a small group of company insiders nominate the majority of the board of directors without owning a controlling stake. Executives at Hangzhou, China-based Alibaba said its partnership system was necessary for preserving the company's innovative culture, but Hong Kong's listing committee said it would go against the exchange's "one share, one vote" principle that's aimed at treating all investors equally. Other Chinese tech firms that have had recently listed in the U.S., including web search company Baidu and online retailer JD.com, have dual classes of stock. The loss of Alibaba's IPO led to some hand-wringing in Hong Kong financial circles over whether the rules in Asia's second biggest stock exchange should be changed to allow new shareholding structures. The day for that debate has finally come," Charles Li, CEO of stock exchange operator Hong Kong Exchanges and Clearing Ltd., said on his blog after the bourse unveiled a "concept paper" at the end of August to gather views from the public on "weighted voting rights.

 

Comment On This Story

Welcome to Wopular!

Welcome to Wopular

Wopular is an online newspaper rack, giving you a summary view of the top headlines from the top news sites.

Senh Duong (Founder)
Wopular, MWB, RottenTomatoes

Subscribe to Wopular's RSS Fan Wopular on Facebook Follow Wopular on Twitter Follow Wopular on Google Plus

MoviesWithButter : Our Sister Site

More Business News