HKEx lost US$60b listing of Alibaba Group

It refused Alibaba's management demands.

HKEx calls for consultation on alternative shareholder rights.

Charles Li, chief executive of Hong Kong Exchanges is calling for a market consultation on alternative shareholder rights after HKEx lost the US$60 billion listing of Alibaba Group.

The Chinese internet giant scrapped its IPO listing after HKEx refused Alibaba’s management demands to nominate a majority of board directors. HKEx does not allow dual class shares with different voting rights.

Li said the public interest involved promoting the long-term competitiveness of Hong Kong as an international financial hub and protecting investors and the rule of law.

“Losing one or two listing candidates is not a big deal for Hong Kong; but losing a generation of companies from China’s new economy is. And losing it without a proper debate is even more unacceptable,” Li said.

He noted that special considerations should only be granted to limited and well defined types of companies, and that there should be safeguards such as a minimum public float, market size or ownership by the founders.

The call came as Alibaba’s chief executive, Jonathan Lu, told the South China Morning Post that Alibaba would not pursue a listing anywhere in the near term, suggesting Hong Kong may yet have time to change its rules and launch Alibaba’s IPO.