SFC weighs options for Alibaba share offer

The Securities and Futures Commission (SFC) has held a board meeting to discuss how to accommodate a listing by mainland internet giant Alibaba, signalling a possible way forward for a deal that could be worth HK$100 billion.

News of the meeting, disclosed to the South China Morning Post on condition of anonymity by sources with first-hand knowledge of the talks, comes as sources close to Alibaba seek to portray Hong Kong listing rules as outdated and out of touch with modern business needs.

SFC officials say Hong Kong's ultimate authority for financial markets is no dinosaur and would be willing to consider any proposal from Alibaba that ensures the regulator delivers on its mandate of maintaining investor protection.

"We have a mission, we have a bottom line, and that is investor protection," said one SFC source, who declined to be identified.

Sources with first-hand knowledge of the meeting told the Post that the SFC had ruled out any change that could be seen as giving Alibaba, founded by teacher-turned-entrepreneur Jack Ma Yun, exemptions from existing listing conditions.

That includes a plan, floated by sources close to Alibaba, to allow the firm's senior management to maintain a partnership structure to nominate a majority of board candidates, on whom shareholders would then be allowed to vote.

The mainland's biggest e-commerce company, which is expected to list its shares before the end of this year, has more than 20 partners including Ma, his co-founders and senior executives.