HKEx President Li has published a rich signature journal "Investor Protection"

September 26 Evening News, yesterday, HKEx President Li has published a rich signature log "investor protection". Alibaba is not mentioned in the text, but the views expressed are quite insinuating. Today, Alibaba Group co-founder, executive vice president of the Board of Directors Tsai also published a signature log "why Alibaba introduced the partner system."

"We propose a partner's corporate governance mechanism that will enable Alibaba's partners---the core managers of the company's business, have greater strategic decision-making power, reduce short-term volatility in capital markets, and ensure long-term benefits for customers, companies, and all shareholders," Tsai said.

At the same time, he stressed, "We hope that the future of our company is far beyond the longevity of any founder, and we are looking for a mechanism that will protect our company for 102 years." We firmly believe that in this constantly changing and subversive world, to maintain the company's innovative ability, culture and mission, is the key to success. Partnership is a creative way to keep the core interests of shareholders at the same time as "who we Are"--which we cannot and will not change.

The following is the full text of Chua's article:

Why Alibaba introduced partner system

Previously, Alibaba Group and Hong Kong regulators have discussed how to put our management innovation and the effective governance of the capital market docking. As a company with a major business in China, Hong Kong is naturally the preferred choice for our listing.

We propose a partner's corporate governance mechanism that enables Alibaba's partners to---the core managers of the company's business, have greater strategic decision-making power, and reduce the short-term volatility of capital markets to ensure the long-term interests of customers, companies and all shareholders.

There are rumours that Alibaba's proposal threatens the "one-vote" principle advocated by Hong Kong's regulators. That is not the case.

We have never proposed a dual shareholding structure (Dual Class) scheme. A typical dual-equity structure is to allow those who have higher voting rights to vote on any business of the company. Our plan fully protects the shareholder's important rights and interests, including the right to elect independent directors, major transactions and the right to vote on related party transactions.

Why should we stick to the governance structure of this partner? Our primary goal is to ensure the company's cultural heritage. In the past 14 years, Alibaba's mission is: "Let the world No difficult business", and strive to help entrepreneurs and small businesses to succeed. The clear mission, the pursuit of long-term goals, and the persistence of values have really defined the "Alibaba culture" and made us the result of today.

At the same time we have observed that many of the best companies in the founder's departure, the rapid decline, but also a number of successful founders have made fatal mistakes. The mechanism we have finally set up is to replace the founders with partners. The rationale is simple: a group of like-minded partners is more likely than one or two founders to have a good culture to carry forward.

We believe that the partnership system will keep us on the same footing: partners are equal, they abandon bureaucracy and hierarchies and work together to solve problems. Partners are not just managers, they are also owners of enterprises, with a strong sense of responsibility. The partnership system is infused with fresh blood and vitality through annual acceptance of new partners. Through this mechanism, we believe that we can maintain continuous innovation and continuously improve Alibaba's talent strength.

Those who do not understand the true intentions of our partnership are likely to criticize our proposal as a mere founder of a company who wants to remain in control. We actually have totally different goals. For 14 years, we have never wanted to use the ownership structure to control this company, and at this moment, we will not! We just want to establish and improve a cultural security mechanism, so that the company can be sustained and healthy development, we hope that the future of the company far beyond the longevity of any founder, we are looking for a guarantee of the company's sustainable development for 102 years of the mechanism.

We firmly believe that in this constantly changing and subversive world, to maintain the company's innovative ability, culture and mission, is the key to success. Partnership is a creative way to keep the core interests of shareholders at the same time as "who we Are"--which we cannot and will not change.

As an E-commerce company, we deeply feel that the Internet will bring about subversive changes in all industries, the capital market is no exception. As a social enterprise, we strive to promote such innovation. We welcome the discussion of what kind of governance model would be more reasonable in the 21st century for "emerging companies like Alibaba".

We do not expect Hong Kong regulators to make changes to a company in Alibaba, but we are confident that Hong Kong should seriously explore the innovative regulatory environment suitable for future development. Today, as the people of Hong Kong, I would like to ask whether the regulation of the capital markets of Hong Kong is left behind by the rapidly changing world, or should the future of the capital market of Hong Kong be changed and rapidly innovated?!!