Both sides now - pros and cons of dual shares

BOTH the Hong Kong and Singapore stock exchanges currently have a "one share, one vote" system. To control a company, one needs to own a significant number of shares.

Alibaba, China's leading Internet group with a potential market value of US$60 billion, wanted to bend this rule in Hong Kong when it explored an IPO (initial public offering). It demanded that its management team - mainly founders and senior executives - have an ongoing right to nominate a majority of board members, even though they only have 13 per cent ownership of the company.

Talks between the company and the Hong Kong Stock Exchange collapsed in September 2013; but now, it appears that both sides are backing down. The exchange is said to be considering a reform of its listing rules, while Alibaba is said to be willing to renegotiate a listing in Hong Kong.