Chinese e-commerce giant Alibaba's decision to list in New York dealt a blow to Hong Kong and has many wondering: what are the implications for the Asian financial hub's competitiveness as an initial public offering (IPO) destination?
Alibaba announced on Sunday that it has started the process of filing for a U.S. IPO, bringing an end to months of speculation about where it would go public. The deal's proceeds are expected to exceed $15 billion, according to Reuters, which would make it the second largest internet listing ever after Facebook's $16 billion IPO last year.
"For mainland companies, Hong Kong continues to remain an attractive destination," Philippe Espinasse, author of 'IPO: A Global Guide' told CNBC on Monday.
(Read more: Alibaba has started plan for US IPO)
"Alibaba's decision was a long time coming. They tried to get their shareholding structure accepted in Hong Kong but it didn't work out. I think an IPO in New York makes sense. There's more flexibility in terms of structures, you have an investor base that understands these sorts of businesses, and there are comparable [listings] - which will get them a better valuation," he added.