New York vs. Hong Kong - A Burst of Regulatory Competition: The Listing of Alibaba
26 Pages Posted: 14 Jul 2015
Date Written: July 13, 2015
Hong Kong’s refusal to grant Alibaba an exemption to its strict listing rules has propelled Alibaba to list in New York, the biggest IPO in history, reopening the debate over regulatory competition by stock exchanges. This paper aims to discuss regulatory competition by using the case of Alibaba. It mainly discusses why the ‘reunion’ of Alibaba and the HKSE did not work out but instead the company was embraced by the NYSE. Also, it tries to find out how the divergence on listing frameworks influences the company choice of listing. The potential legal risks after Alibaba’s listing will be also analysed.
Keywords: Alibaba, stock exchange, regulatory competition, listing rules, Variable Interest Entity (VIE), Dual-class Share (DCS) structure
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By Stefan Petry