China's biggest e-commerce company Alibaba has delayed its up to $15 billion listing in Hong Kong amid growing political unrest in the Asian financial hub, two people with knowledge of the matter told Reuters.

Alibaba held a board meeting before its latest quarterly earnings release last week, during which the board decided to postpone the Hong Kong listing which was set to take place in late August, one of the people said.

The decision was made on the lack of financial and political stability in Hong Kong amid more than 11 weeks of pro-democracy demonstrations which have become increasingly violent and plunged the city into turmoil, the people added.

Alibaba's Hong Kong-listing plans are being closely watched by the financial community for indications on the business

environment in the Chinese-controlled territory and provides a window into Beijing's reading of the situation.

A spokesperson for Alibaba declined to comment on the matter when contacted by CNBC.

While no new timetable has been formally set, Alibaba could launch the Hong Kong deal as early as in October, seeking to

raise $10-$15 billion, when political tensions ease and market conditions become favorable again, said one of the people.

The decision to postpone the deal, initially set for late August, was taken at a board meeting before Alibaba's latest earnings release last week, the second person said.

Tear gas has been used frequently by police while more than 700 people have been arrested, followed by an unprecedented airport shutdown last week. Hong Kong's stock market fell to seven-month lows last week.

"It would be very unwise to launch the deal now or anytime soon," the first person said. "It would certainly annoy Beijing by offering Hong Kong such a big gift given what's going on in the city," the source added.