Billy Mak, an associate professor at the finance and decision science department at Hong Kong Baptist University, said he wouldn't accept Ma's proposal because the dual-class structure is not consistent with the values upheld by the HKEx.

"It's pointless for the HKEx to review its listing rules to accommodate Alibaba because the dual-class structure in the case of Alibaba is not fair, just or transparent," said Mak.

"Hong Kong would become the world's third-biggest IPO market this year if Alibaba goes public there, but the price is too big and not worth it."

Compromising for Alibaba would set a bad example for other companies to ask for special treatment in future IPOs, Mak added.

Analysts said the door for Alibaba to list in Kong Hong is closing very fast and it is likely the company will not be able complete its IPO within 2013.

Starting on Oct 1, companies must appoint IPO sponsors - in other words, investment banks - at least two months before filing a listing application, according to new rules set out by the HKEx.

Applications usually take around one month to process and, if approved, a company would need another month at least to market the deal.