Hong Kong exchange closer to launching IPO review process-source

HONG KONG Thu Jan 9, 2014 5:11am EST

HONG KONG Jan 9 (Reuters) - The Hong Kong stock exchange has submitted a draft report to the Securities and Exchanges Commission to consider new shareholding structures for publicly listed companies, a person familiar with the matter told Reuters on Thursday.

The submission brings it closer the launch of a public consultation process for allowing different shareholding structures for Hong Kong initial public offerings.

The move comes after Hong Kong regulators in 2013 rejected Internet giant Alibaba Group Holding Ltd's IPO because of the firm's special request to keep a shareholder structure allowing a group of top managers and founders - who together own only around 13 percent of the company - to nominate and control the company's board. That request went against the exchange's one-share-one-vote principle..

Hong Kong Exchanges and Clearing Ltd (HKEx), the stock exchange operator, said in November it was considering launching a public consultation.

The SFC and the HKEx declined to comment.

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