Alibaba's U.S. record breaking IPO has made its value soar to US$231 billion. This has made Jack Ma the richest man in China, with his shares valued at $19 billion. The company is now worth more than both eBay and Amazon combined. However, it appears that interested Chinese investors won't be able to take part in it as funding and government constraints hinder domestic parties from purchasing company shares. 

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Since its debut last Friday, Alibaba's stock has become one of the most sought after with its stock starting at $68 and settling at $93.89. However, the new stock exchange wonder is out of China's reach.

Retired factory worker Zhou Nushi wanted to buy shares of Alibaba Group Holding, Inc., but was informed that she could not. Like most Chinese, Nushi does not have the financial resources or the necessary qualifications to invest in securities listed outside Mainland China. She is confused as to why she can't invest in a Chinese company even if she is Chinese, according to China Daily. 

Alibaba's financial success have been driven by Chinese consumers, but they will be largely left out of the company's stock offering because they are unable to purchase equities or securities directly due to government-imposed restrictions. Only the wealthiest Chinese can purchase these stocks through indirect qualified investor programs. 

The inability of mainland investors to buy into the historic IPO may lead to change. An analyst at Huaxi Securities, Mao Sheng, said that it is sad that local investors cannot participate in the deal. This issue may push the Chinese government to speed up the refinement of its IPO system. IPO reform takes time, and the government takes the development of the capital market seriously, which indicates that improvement on this sector is on its wa. 

Chinese locals are hopeful that they will be able to purchase stakes in Alibaba because the China Securities Regulatory Commission said that it is preparing to move towards an American style IPO registration system. Some funds have been set up for investors looking to purchase stake in Alibaba. At present, however, no definite date had been released with respect the fulfillment of these plans. 

An example is Harvest Fund Management, Co., which is one of China's oldest and biggest asset managers. This is not just one fund, but a range of funds that will allow mainland clients to buy shares of Alibaba. With this, it is possible to purchase Alibaba stock, but not for the average Chinese investor.

TagsAlibaba IPO, alibaba shares, Jack Ma