POLL: How should HKEx change its listing rules to encourage 'innovative' companies to list?

Author: | Published: 4 Nov 2013
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The initial public offering (IPO) of Alibaba, China’s largest e-commerce company, has sparked debate about how the Hong Kong Exchange (HKEx) should treat so-called innovative companies with different managerial structures.

HKEx and the Securities and Futures Commission’s (SFC) one-vote-per-share rule has prohibited companies with dual-class shares and similar structures to list on the exchange.

But Alibaba’s founder, Jack Ma, has insisted on listing the technology company with a structure that allows its partners to nominate directors, and then hold a shareholders’ vote to approve the appointments. HKEx refused this structure, but it was accepted by both the New York Stock Exchange and Nasdaq.

In an October blog post, HKEx CEO Charles Li contemplated a review of HKEx’s listing rules to facilitate the listing of innovative companies. This coincided with Alibaba announcing that it was postponing its listing.

This month’s IFLR poll considers how HKEx should alter its listing rules to appeal to innovative companies, particularly in balancing corporate governance with special controls demanded by these companies’ founders.

Vote now at www.iflr.com or LinkedIn.

The results will be published in the December/January issue of IFLR magazine.