It's official. Alibaba will not list in Hong Kong.

In what is considered as a huge blow to Hong Kong's stock exchange, Chinese e-commerce giant Alibaba Group Holding announced on Saturday that it has chosen to go public in the US.

The initial public offering (IPO) proceeds is expected to surpass US$15 billion and will value the company at US$140 billion, experts said.

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Investors and analysts have been waiting for Alibaba's decision on where to go public after the company failed to secure regulatory approval in Hong Kong.

The company on Sunday said it has begun the process of listing in the US, finally ending months of speculation.

Experts earlier expressed hoped that Alibaba and Hong Kong's Securities and Futures Commission could still reach an agreement after their first round of talks failed.

The Hong Kong regulator did not give clearance to Alibaba's listing in the city, insisting that the Chinese e-commerce giant violated the one-share, one-vote principle.

Alibaba and Hong Kong regulators went back to the negotiating table to solve the problem but even as the decision of the Hong Kong Securities and Futures Commission was known, Alibaba has already announced its decision.

The Hangzhou, China-based Alibaba, in a statement, said it respects the stand and policies of Hong Kong and thanked those in the city who have supported Alibaba Group.

The e-commerce giant has not provided a timetable for its US IPO. It also has not decided on what investment bank to hire for its listing and what US stock exchange it has chosen to list.

Alibaba, which began in 1999 by connecting Chinese manufacturers with buyers overseas, grew to become the world's largest online B2B trading platform for small traders.

The company also operates Taobao, China's largest consumer-to-consumer online shopping site, and Tmall.com.