Window closing on Alibaba IPO in Hong Kong this year

Mainland internet giant Alibaba Group has missed its window to sell shares in a New York initial public offering this year and may have only a matter of weeks left before the same happens in Hong Kong, financial industry experts told the South China Morning Post.

The timeline of regulatory requirements in both jurisdictions has ramped up the pressure for Alibaba to reach an accord on a listing with the authorities in Hong Kong if it wants to get a deal done this year, financial sector sources say.

Talks with Hong Kong regulators have been stalled by a stand-off over the firm's desire to retain a partnership structure that the authorities fear could give too much voting power to company executives at the expense of ordinary shareholders.

Fresh details of the controversial partnership programme emerged yesterday in an e-mail sent to Alibaba staff yesterday by company founder Jack Ma Yun, a copy of which was obtained by the Post.

The firm wants to be allowed to maintain a partnership structure to nominate a majority of board candidates, on whom shareholders would then be able to vote. Regulators say that gives partners more rights than ordinary shareholders, effectively creating a dual shareholding structure not allowed for new listings in Hong Kong.

The stalemate has led to speculation that Alibaba would switch to New York where dual share structures are allowed.

Edward Au, a partner at Deloitte specialising in Hong Kong and China listings, said that would take "at least four months", including about one month to harmonise the accounting regime the firm uses with US listing rules.