US bourses accept board plan: Alibaba

Alibaba has paved the way for a listing in the United States, with a spokesman for the mainland e-commerce giant saying yesterday that both the New York Stock Exchange and Nasdaq had accepted its special partnership structure, which would let its top executives nominate the majority of board members.

The two bourses had formally accepted Alibaba's partnership structure, which derailed its initial public offering (IPO) plan in Hong Kong, the spokesman said, adding: "We just want other people to understand the partnership structure is an open, innovative, responsible and sustainable system for a company's fundamental needs."

Another Alibaba spokesman said last night that the company had not yet selected an exchange or appointed underwriters for a US listing.

Hong Kong regulators had said there was no provision in listing rules that allowed preferential treatment of one group of shareholders over another.

"It's a pity that Hong Kong lost out on this iconic internet giant being listed in the city, but the Hong Kong stock exchange, as a regulator as well, had to safeguard the interests of minority shareholders," said Linus Yip Sheung-chi, strategist at First Shanghai Securities.

The rebuff by the Securities and Futures Commission and the exchange resulted in a war of words between the two camps.