Hong Kong panel recommends reform of rule that lost the city Alibaba's IPO

An advisory council to the Hong Kong government has recommended a raft of possible reforms to the city's IPO regime, including considering a change to the "one-share-one-vote" rule that cost the city the listing of Chinese e-commerce giant Alibaba. The Financial Services Development Council (FSDC) said in the report issued on Wednesday that Hong Kong's government and regulators should consider revisiting the rule, which prevents companies with unusual ownership structures from listing in the city. Alibaba Group Holding Ltd filed in the United States last month for an initial public offering (IPO) expected to raise more than $15 billion. Alibaba's decision to list in the U.S. was a blow to Hong Kong's bourse, operated by Hong Kong Exchanges and Clearing Ltd. HKEx was initially Alibaba's preferred IPO venue, but the city's regulators balked at any potential violation of the "one-share-one-vote" principle.

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