Analysis: How Does Hongkong Lose The Listing Of Alibaba?

< p > the Hongkong stock exchange has been a huge share of IPO transactions in mainland China. There are many large IPO companies in the process of preparation. However, due to their efforts in commodities and derivatives business, they have missed the latest wave of Chinese technology companies. < /p >
< p > according to statistics of data service provider Dealogic, since 2009, 9 of the 10 largest IPO transactions in China's Internet related enterprises have been completed in the US. < /p >
Less than p months ago, the Hongkong stock exchange's Hongkong trading and Clearing Company Limited and its regulators, Hongkong securities and Futures Commission (hereinafter referred to as the Hongkong Securities Regulatory Commission), have just reached a deadlock on a proposal for corporate governance of Alibaba: Alibaba hopes to continue to nominate the majority of directors after its listing. This structure will provide control of the board of directors for its founding partners, but it violates the current "one vote, one vote" system in Hongkong. < /p >
The negotiations between the stock exchange and Alibaba were broken in September last year. P Since then, CEO Li Xiaojia of the stock exchange has called for changes in the rules. Many people believe that the move is aimed at continuing to attract Alibaba interest. However, the matter has not been progressed, and the people involved have also split up. < /p >
< p > "just because the status of" a href= "//www.sjfzxm.com/news/index_c.asp" Alibaba < /a "provides special treatment for it will send out a bad signal. "The overall regulatory policy adjustment can not be completed in the short term," a person familiar with the matter said. < /p >
< p > other participants in the regulatory process said that even if the Alibaba and the stock exchange reached an agreement, they could not convince the Hongkong Securities Regulatory Commission to recognize the necessity of this adjustment. "Their conflict is not the stock exchange, but the Hongkong Securities Regulatory Commission." Another person familiar with the matter said. < /p >
Some members of the Hongkong Securities Regulatory Commission (P) tend to Alibaba, but some members believe that the move may weaken the legal effect. They are worried that Hongkong's position as a global financial centre may be impaired once the impression of laws is changed to comply with the will of power. < /p >
< p > Alibaba expressed its dissatisfaction last autumn. Cai Chongxin, vice chairman of the Alibaba responsible for IPO affairs, said in an article on the company's website that Hongkong is the first choice for Alibaba, but he also said: "what I want to ask is whether Hongkong's capital market regulation is left behind by a rapidly changing world, or should it be changed for the future of Hongkong a href=" //www.sjfzxm.com/news/index_c.asp "and capital market < /a >" rapid innovation! "
< p > Alibaba has repeatedly reiterated its wish to retain the structure of its partners. In October last year, the company received written confirmation from the NYSE and NASDAQ: this will not be an obstacle to the company's listing in the US. < /p >
< p > a spokesman for the Hongkong Stock Exchange said it would not comment on specific companies. The Hongkong Securities Regulatory Commission declined to comment. Li Xiaojia even said in a recent earnings call conference: "don't ask me Alibaba questions." < /p >
< p > Li Xiaojia spent 2 billion 160 million US dollars in 2012, less than a href= "//www.sjfzxm.com/news/index_c.asp" > acquisition of /a > London Metal Exchange, but many people think this price is too high. The profit of the stock exchange is dragged down by millions of dollars in technology improvement. The LME is still facing more group actions. < /p >
< p >, however, Matthew Smith, an analyst at Macquarie Securities, believes that targeting commodities trading will eventually get a return. "When the key growth drivers of commodity trading all around the world are ready to go, is there a mistake in the strategy of major commodity trading? I think that's right." He said. < /p >
Less than P, the stock business of Hongkong stock exchange will not be hit too hard by Alibaba's decision to list in the US. IPO accounts for about 15% of the revenue of the transaction. < /p >
< p > according to the data of Dealogic, Hongkong is the second largest IPO market in the world after the NYSE in 2013. In 2012, it slipped to fourth place in the first 3 years. < /p >
< p > in fact, the SEHK started well in 2014 and has attracted many important IPO transactions. For example, Wanzhou International (formerly known as Shuanghui International) will raise $5 billion in April. < /p >
< p > "we still have a lot of goods in hand." People familiar with the matter said. < /p >