The main reasons are as follows:

1. The business is in China, the management is in China, but the source of funds and the registration point are both overseas. China currently prohibits foreign capital from controlling information companies, and foreign venture capital generally refuses to list the invested companies in China (in fact, Internet companies actually controlled by foreign capital cannot be listed in China, and variable entities are illegal in the eyes of the China Securities Regulatory Commission).

2. From a regulatory perspective, China has relatively high requirements for listed companies, requiring companies to be profitable continuously. The corporate structure is not that complicated. Alibaba's holding structure involves many subsidiaries, which hold shares in each other.

3. From the perspective of corporate registration, China currently has industrial and commercial registration, while the United States has commercial registration, and the latter has very low requirements for the company itself. In the listing process, the domestic approval time is very long. After the New York Stock Exchange aligned with Nasdaq in 2009, the listing requirements were much lower than those in China. As the most radical exchange in the world, Nasdaq even allows dual-class shares (one of the important reasons why Alibaba did not list in Hong Kong is that the Hong Kong Stock Exchange insists on equal rights for equal shares). Alibaba's management does not have many shares, but its voting rights are greater than those of ordinary shareholders. It is mainly Alibaba's partnership system (VIE structure, the so-called VIE refers to the transfer of a company's economic benefits to a third party through a series of contracts. Japan's SoftBank Group and the United States Yahoo Corporation hold Alibaba through this structure to implement effective "majority ownership.")

4. The United States is a huge financing market. Alibaba believes that its financing amount of US$21.76 billion is difficult to achieve in China.

5. The tax, audit and time costs involved are high. Alibaba Group's previous preparations for listing, including documents, options, etc., were designed in accordance with overseas rules. If it is transferred back to China, it will face a large amount of taxes and need to be redesigned in accordance with domestic accounting standards. "The costs of taxation and auditing are very staggering, beyond the imagination of many people.

6. Listing on the A-share market is also not conducive to Alibaba's internationalization process.

For giants like Alibaba, the domestic listing system is ultimately not suitable for their development. Or in other words, this type of Internet company is not suitable for China's listing system.