Alibaba is not rushing into the US largely because that market is noted for its tough disclosure requirements and a large contingent of litigation-happy shareholders and investors. Hong Kong is the Goldilock's choice for Alibaba except for a provision in the rules that require all shareholders to be treated equally.

To convince the authorities to change the rules just for it, Alibaba has to demonstrate that its listing can bring real benefits to Hong Kong other than the many millions of dollars in fees to a few international investment banks, which are not going to leave because there is no shortage of other opportunities. Many mainland enterprises, particularly the regional banks, are lining up to float on the Hong Kong stock exchange.

Ma and his lieutenants may not fully appreciate the importance of consistency in a rule-of-law market environment so meticulously established by the Hong Kong government over the past several decades to attract long-term investment funds from overseas institutions.

Caving in to Alibaba's demands could risk undermining the integrity of the market and the efforts to maintain an image of trustworthiness.

Once a bad precedent is set, it can be expected that other companies will be making all kinds of requests to accommodate their individual needs. This would make a mockery of the securities ordinance that is shaped by the principle of fairness and transparency.

Ultimately, Hong Kong people would ask what's in it for them. Alibaba doesn't have a presence of any significance in Hong Kong. Its contribution to the Hong Kong economy is minimal at best. A listing of the company's shares in Hong Kong would benefit it much more than Hong Kong.

As such, the party that should make compromises is Alibaba, not Hong Kong. It must learn to play by the same laws as others.

The author is a senior editor with China Daily. jamesleung@chinadaily.com.cn

(China Daily 11/11/2013 page8)