ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Alibaba Group Holding founder Jack Ma Yun celebrates during the Chinese company's record-breaking IPO at the New York Stock Exchange on Sept. 19, 2014.   © Getty Images
Stocks

Will Hong Kong spark a race to the bottom in IPO rules?

Three years after missing Alibaba, HKEx rethinks investor rights

JOYCE HO, Nikkei staff writer | China

HONG KONG -- Jack Ma Yun dealt Hong Kong's stock exchange a blow that it still hasn't recovered from when he chose New York for Alibaba's initial public offering in 2014, giving the Big Apple bragging rights to hosting the largest-ever technology listing. Today, the Chinese billionaire is dangling another threat over the Hong Kong bourse as he prepares to float Ant Financial, the e-finance company that could be worth as much as $75 billion.

The deciding factor for Ma, then and now, is whether Hong Kong will relax its rules on investor rights. Ma chose the New York Stock Exchange three years ago because it allowed a group of partners at Alibaba Group Holding to have full authority to appoint the board of directors, denying shareholders a say in an essential part of running the company. This was staunchly opposed by Hong Kong, which views the principle of "one share, one vote" as a bedrock ideal -- one that has withstood periodic challenges for decades.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more