Analysts said if Ali back to Hong Kong, not only means "with different rights" shareholding structure of recognition, but also means that the Hong Kong stock exchange and a strict "one share, one vote" principle break, Hong Kong stocks will become more active. HKEx executives said the move limited to specific categories of companies, does not mean "with different rights" became prevalent in Hong Kong
Recently the Hong Kong Stock Exchange listed company "with different rights" rule news media attention. HKEx last year because the company "with different rights" shareholding structure and the rejection of its listing in Hong Kong and later had to choose us-listed Alibaba.
Miss out on Alibaba Hong Kong Exchange may begin to reflect on. It is reported that June 19, HKEx announced different voting structure (that is, "with different rights") concept paper on consultation results, marketing support to accept the amendments to the listing rules for the second stage consultation with different rights, HKEx to be held in the third quarter or early in the fourth quarter to release draft proposal, officially launched the second stage consultation.
Topics on Alibaba to return to Hong Kong was concerned, there are rumors that even, Ali Baba Ali pictures return to Hong Kong to be backdoor.
Was rejected by the Hong Kong Exchange Company
In fact, the company listed in Hong Kong stock exchange for the first time. In 2007, Alibaba is listed on the Hong Kong stock exchange. But Alibaba B2B in the Hong Kong share price performance in General, since the start of the third quarter of 2009 that declining shares fell to HK $ 10. On February 21, 2012, the Alibaba Group announced privatization of B2B business, delisted from Hong Kong.
After a year of silence, in July 2013, there are rumors that Ali will return to Hong Kong.
It is understood that Alibaba's second entity of Alibaba group holding limited is registered in the Cayman Islands, held by its wholly owned 100% Taobao Holdings Limited, was registered in the Cayman Islands. Companies registered in offshore, do not meet the listing requirements in mainland China. Therefore, selected of the Alibaba in Hong Kong stocks and the stock market, the only alternative.
Jack Ma, Alibaba's founder and Chairman of the Board of Directors has said on many occasions, "why did you choose in the United States? Since we had been refused entry to Hong Kong. My top priority is to Hong Kong. ”
According to Alibaba's prospectus shows that SOFTBANK's largest shareholder, stake 34.4%, Yahoo was holding 22.6%, MA 8.9% stake, stakes in investment units held by Ali 29%, Alibaba Group's Board of Directors Executive Vice President Tsai shares reached 3.6%.
Though he only owns 8.9% shares of Ali, Jack Ma, but according to previous agreement with SOFTBANK, SOFTBANK shall not, without Ma, Tsai removed replaced with the consent of any of the partners ' group by Alibaba directors and over 30% votes to Ma and Tsai. Given that Ma and Tsai good relations for many years, and get super 30% of the voting rights held by Softbank, MA real voting rights over 42.5%. Ma still firmly in control group control.
Alibaba the multiple equity partnerships involved with different rights, which is contrary to the laws of Hong Kong follows the shareholders of "one share, one vote" the same unit with the right system. Although Alibaba was discussing with the Hong Kong stock exchange and negotiation, many proposals to change the existing rules of the stock exchange of Hong Kong, but these recommendations cannot be made substantial progress before Ali went to the United States market.
In fact, Ali wished to retain the system requirements, a partner in October 2013, United States the NYSE confirmed in writing partnerships with different rights and did not become the legal obstacles to the listing in the United States.
HKEx is open to Ali returned to Hong Kong
HKEx said that allowed a small group of shareholders the company's leadership, without commensurate with the right to vote shares held. Analysts say, if the rule is passed, will mean and strict "one share, one vote" principle to break.
"With different structure should not be applicable in all situations, we are considering the recommendations of a unit for a ticket should be treated as a regular, but some companies may in certain circumstances or under certain restrictions, with different weight is used. "HKEx listed said Mr Graham, head of Regulatory Affairs Director is not expected with different rights became popular in Hong Kong.
HKEx believes that whether to proceed with the different weight is a key factor affecting the competitiveness of Hong Kong. Results of the consultation showed, the market is generally endorsed the implementation of a new structure, but with different structure should have a specific scope, that is, new applications should be limited to listed companies, and limited to specific categories of companies.
This was interpreted by the media or Hong Kong to Alibaba's green light to return to Hong Kong. In this regard, there are dissenting voices in the market, such as the "one share, one vote principle should be maintained, because it is about investor protection in Hong Kong important principles behind the company's governance practices, are generally considered to be fair to the shareholders and equity measures. ”
In fact, the HKEx has been pursuing a "one share, one vote" principle in the past 25 years, the listing rules explicitly prohibit, restrict different voting structure.
With the scope of application of different structure, the market considers that there should be many restrictions for this type of company, the market considers that there should be more regulatory requirements, such as protection of investors ' interests, with different power companies are required to enforce compliance with United States that limit will be used.
In fact the Hong Kong stock exchange on June 19, will re-examine the current ban on mainland companies listing in Hong Kong as the second approach. Relaxation of restrictions on secondary listing of mainland companies, a move that was interpreted by the media of Hong Kong Exchange opened, allowing Alibaba, Baidu and East listed public companies in the United States through a second such methods to return to Hong Kong.
Analysis of the industry, NYSE-listed rules allow you to include a Facebook site several large technology groups, and Google using multiple ownership structure so that their founder to funding while maintaining control of the company, which is helpful.
Hong Kong stocks open doors or more active
Analysis of the industry, if there is support of public opinion, may make a special case for Alibaba spared by the HKEx, could allow Alibaba to achieve listing on the Hong Kong stock exchange. But conversely, regulators and legal experts on how to protect the interests of small shareholders to come up with a solution, to its corresponding conditions. Predict, now it takes two or three months at the earliest before it can start, might be able to negotiate during a package acceptable to.
In fact, it was initially the preferred option of Hong Kong-listed Alibaba, Ali B2B businesses have been listed in Hong Kong, be familiar with Hong Kong's trading rules and United States security market for the listing of the company's regulatory and disclosure requirements are more restrictive, and minority shareholder class-action lawsuits frequently, listed in Hong Kong is relatively favorable.
On September 16, 2014, company said in a statement, "Alibaba decided today started in United States listed, to make the company more transparent and internationalization, to realize the company's long-term vision and ideals. Future conditions allow, we will actively participate in the return of domestic capital markets, domestic investors and grow together. ”
Analysis and forecast, Hong Kong stock or to be more active in IPO financing terms, Hong Kong now ranks fourth, followed by New York, NASDAQ and London if current positive mood of the market, as long as the economic data continued to hold up well, Hong Kong can achieve at least 100 billion Hong Kong dollars by the end of financing, is expected to return to the top three position in the IPO market in the world, following after the NYSE and NASDAQ.
