Stock Exchange Alliance Likely To Boost Chinese Listings In London

by Philip Morton, Investors Offshore.com

06 June 2002

The newly appointed President of Hong Kong's Association of Chartered Certified Accountants (ACCA), Law Kwong-chau has suggested that a planned alliance between the Hong Kong and London stock exchanges is likely to lead to more companies from the Chinese mainland listing in London.

'Presently, London is not a favourite place for mainland or Hong Kong companies to consider a listing. But the alliance will change this situation soon,' Mr Law told the South China Morning Post. The formation of closer ties, announced by HKEx and the LSE last month, is designed to facilitate companies seeking dual listings in Asia and Europe, and is set to come into force in 2003.

According to the SCMP, although some 50 mainland enterprises are listed in Hong Kong, and around 20 in the United States, none are currently listed in London. However, the planned alliance is set to change all this, allowing mainland and SAR based companies greater access to the European markets.

'They want to tap funds in Europe while they also want to show they can meet the international standards,' the new ACCA head explained, adding that: 'It will also help the mainland companies build up their brand names in Europe, which will help to boost the sales of their goods and products there.'

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