HKEx mulls consultation on shareholding structures

Hong Kong's stock exchange is edging closer to a consultation that could lead to a revision of its listing rules, following mainland e-commerce giant Alibaba's abandonment of an initial public offering.

"Following on from discussions at the April and July listing committee policy meetings, listing committee members discussed a possible market consultation on different shareholding structures at today's meeting as part of its regular agenda on policy matters," Hong Kong Exchanges and Clearing said yesterday. "Progress was made in developing a course of action which may lead to a public consultation exercise."

Alibaba failed to convince Hong Kong regulators to waive rules and allow the unique partnership structure it wanted, which would have given 28 partners - mainly founders and senior executives, who own about 10 per cent of the company - the power to nominate a majority of its board members.

The Securities and Futures Commission said giving partners that much voting power would cut across the one-share, one-vote principle that underpins Hong Kong' securities law.

Alibaba founder Jack Ma Yun said last week that if Hong Kong decided to discuss changes to its listing rules because of his company, he would be honoured.

"Hong Kong doesn't need Alibaba, but the city needs innovation for its future," Ma said.