Why Does The Hkex Not Approve Ali'S "Dual Equity" System?

< p > relative to the loose governance structure prevalent in the US stock market, Hongkong securities regulatory authorities are stricter in controlling corporate governance structure.

But it is also this strict control system that has left the Hongkong Stock Exchange (hereinafter referred to as the "HKEx") to lose the largest initial public offering (IPO) paction since Facebook was launched.

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"Obviously, the practice of Hongkong securities regulatory authorities will lose some opportunities, but we deserved to give up these opportunities," said Dan (Dan), head of investment in Greater China in P Pictet, Asset Management Ltd.

I do not think HKEx needs to adjust policies to accept listing pactions for Alibaba group at HKEx.

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< p > as the largest e-commerce company in China, Alibaba group announced in March 16th that the company has started the program and will submit a prospectus to the securities and Exchange Commission of the United States.

This also means that the Hong Kong stock exchange, which was once regarded as the first choice of listing by Alibaba group, has completely lost its opportunity.

In a statement released last week, Li Xiaojia, President of the Hongkong stock exchange, said that regulators in Hongkong need to change the listing rules to adapt to enterprises linked to the "new economy". Charles

Alibaba group said in its statement on March 16th, "we are grateful to all circles in Hongkong for their concern and support for Alibaba group.

We respect Hongkong's current policies and starting points, and will continue to pay attention to and support Hongkong's innovation and development. "

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< p > at present, only one company in the Hong Kong Stock Exchange has a multi shareholding structure.

This company is Swire Pacific from real estate to aviation.

In 1973, Swire Pacific issued B-shares.

In 1987, the securities regulatory authorities of Hongkong began to restrict the issuance of B shares by voting rights over ordinary shares.

At that time, Hutchison Whampoa, Cheung Kong and Jardine group planned to issue B shares.

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< p > < strong > US market practice < /strong > /p >

< p > and a href= "//www.sjfzxm.com/news/index_c.asp" > HKEx < /a > is completely different. In the same period, the New York Stock Exchange will release restrictions and allow the company to issue shares with lower voting rights after the General Motors threat will be delisted from the NYSE.

From mid 1984 to mid 1987, nearly 50 companies started issuing shares with different voting rights from general motors.

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Last year, Alibaba group contacted the HKEx and its regulators for the IPO. The Alibaba group hoped that HKEx could allow it to adopt the "dual-class structure" to guarantee the control of the management team headed by Ma, when the HKEx said that such a shareholding structure violated the current "one vote, one vote system" in P.

The two sides negotiated several times around the issue but failed to reach agreement.

Last September, the talks broke into a stalemate.

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< p > Jeffrey Mark Piper Jeffrey partner of Hongkong law firm (Jeffrey Mak) said that the adjustment of Hongkong securities regulatory authorities is facing many risks, because Hongkong lacks the legal system of class action, and shareholders who seek compensation can hardly realize their wishes.

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< p > < strong > investors' inertia < /strong > < /p >

< p > Mark said, "the American system makes investors prefer to solve problems through litigation. This means that if there are problems in enterprises, investors will ask lawyers to sue.

But in Hongkong, in this case, the inertia of investors makes it difficult for them to sue.

Because of this, Hongkong securities regulatory authorities will play a more active role to protect the interests of investors.

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< p > Mark said that plaintiffs in Hongkong must advance the costs of litigation, and the whole city lacks a class action mechanism.

Of the 1669 companies listed on the HKEx, 486 come from mainland China, and China's legal system is totally different from that of the United States.

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Wei Yili P, chief executive officer of Financial Conduct Authority, believes that Hongkong securities regulatory authorities should avoid subconscious changes.

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< p > < strong > core principle < /strong > < /p >.

"P," Wei Yili said in an interview with Bloomberg in Hongkong recently. "Because of one or two cases, adjusting the rules in a short time will put yourself in danger.

In the case of the British stock market, if some core principles are changed, careful consideration must be made before.

Wei Yili did not comment on the listing of Alibaba group.

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< p > Alibaba group has asked for a roundabout round of the relevant ban on initial public offering of HKEx, that is, a stock can not have different levels of stock, which is often used by American Technology Corp, including Facebook and Google.

Asian Corporate Governance Association has pointed out that if the HKEx approves the request, it will undoubtedly face criticism from all circles, saying that it will put the interests of Alibaba group above shareholders' interests.

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According to the data compiled by Bloomberg, Google co founder Larry Paige (Larry Page) and Sergio Brin (Sergey Brin) control the B class shares of the search giant 81%. < p >

Compared with Class A shares held by ordinary investors, the voting rights of class B shares are 10 times that of the former.

In contrast, Facebook founder Mark Zuckerberg (Mark Zuckerberg) also controls 69% of B shares of the company.

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< p > on the London Stock Exchange, the Royal Shell of Holland adopted the "two-tier ownership structure", but the two stocks had the same voting rights, but the dividend tax was different.

The stock exchange of Singapore does not allow enterprises to adopt the "two-tier ownership structure".

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< p > < strong > < a > href= > //www.sjfzxm.com/news/index_c.asp > > Alibaba > /a > valuations < /strong > /p >

< p > Alibaba group said in March 16th that the company will trade on the US stock market, but did not disclose the number of shares it would issue and the issue price.

According to sources, the Alibaba group's share capital will account for 12% of the total share capital of the company.

According to the valuation of US $153 billion, the company will raise US $18 billion 400 million.

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The P is one of the worst performing stock exchanges in the world this year.

Since October 2010, HKEx has not received any initial public offering of more than 4 billion US dollars.

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P > strong > investment ties < /strong > /p >

Li Xiaojia, President of the HKEx, is now positioning Hongkong as an investment link between China and the world. P

The HKEx paid $2 billion 200 million in 2012 to acquire London Metal Exchange to expand into commodity futures business.

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"P," Li Xiaojia said in a statement last week, "we are proud of our habits of respecting the law and observing principles.

But we must also find ways to make our market more competitive, especially with regard to new economy or technology companies.

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Tang Jiacheng, chairman of the Securities and Futures Commission, the Hongkong market watchdog, said P would not oppose the HKEx's proposal for listing rules.

But he said, "the principle of" one vote and one vote "is deeply rooted in the capital market of Hongkong.

Many problems need to be solved before considering changes. "

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