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Fund managers back HK's "one share, one vote", disagree with Alibaba

Published on Apr 15, 2014 4:21 PM
 
An employee walks past a logo of Alibaba Group at its headquarters on the outskirts of Hangzhou, Zhejiang province. Global fund managers of nearly US$14 trillion (S$17.5 trillion) in assets support Hong Kong's "one share, one vote" principle, and oppose changing listing rules to allow non-standard shareholding structures, the Asian Corporate Governance Association (ACGA) said on Tuesday. -- FILE PHOTO: REUTERS

HONG KONG (Reuters) - Global fund managers of nearly US$14 trillion (S$17.5 trillion) in assets support Hong Kong's "one share, one vote" principle, and oppose changing listing rules to allow non-standard shareholding structures, the Asian Corporate Governance Association (ACGA) said on Tuesday.

The association questioned 54 portfolio managers and corporate governance officers about proposals discussed during Hong Kong regulators' talks last year with Chinese e-commerce giant Alibaba Group Holding, ahead of a possible listing.

Regulators dismissed Alibaba's request to allow a small group of company insiders nominate the majority of its board, prompting the company to consider New York for a possible initial public offering worth over US$16 billion.

In the survey, 51 respondents were against such non-standard partnership structures where partners can nominate the majority of a company's board of directors. Most also said they would demand a discount of up to 25 per cent on the share price of a company using such a structure in Hong Kong.

 
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