Update | Outdated fintech regulations hurting Hong Kong, Jack Ma says

Hong Kong must reform its listing rules to attract new-economy businesses and remain relevant as Asia’s financial hub, said Alibaba Group Holdings’ founder Jack Ma. The city as a destination for the initial public offer of Alibaba’s online payments unit Ant Financial is “not a foregone conclusion,” he said.

Ant Financial, which operates the AliPay e-payment platform, is poised for an IPO to fund its expansion. At issue is whether Hong Kong’s regulatory framework is suitable for companies engaged in financial technology, or fintech, said Ma.

“There’s been a lot of media reports and speculation as to whether [Ant Financial] will list in Hong Kong,” Ma said in a telephone interview with the South China Morning Post. “We will list in Hong Kong only if we think the city is ready.”

“All the existing listing regulations were designed decades ago before the Internet Age for property developers, banks, financiers and traditional retailers, and not relevant to startups and new businesses,” he said.

Of the 343 companies that raised capital in Hong Kong between 2010 and 2013, only 22, or 6 per cent of the total, were technology related, according to the Hong Kong Stock Exchange’s data.

Alibaba chose to list its shares in New York in 2014, in a US$25 billion IPO that was the world’s largest that year. The Hangzhou-based company operates the world’s largest online shopping and e-commerce platform.