In an interview with Caijing, Furse said four companies on AIM have concrete plans to move to the Main Market. Moreover, she stressed that LSE attracts companies by offering “no litigation or political risks for overseas companies.”
Seventeen of the Chinese companies on AIM joined last year,
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The new office in Beijing’s financial district,
adidas f50, which Brown helped dedicate after meeting with Chinese Premier Wen Jiabao, is the latest example of LSE’s blooming friendship with Chinese regulators and companies. The good relations date to 1994, when LSE signed a memorandum to cooperate with the Shanghai Stock Exchange and China’s Securities Regulatory Commission.
“We have a larger portion of professional institutional investors as opposed to retail investors, which provides longer stability and less volatility,
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The commission decided in July to let foreign stock exchange companies set up China representative offices,
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A delegation led by British Prime Minister Gordon Brown helped open LSE’s first office in Beijing, six months after Chinese regulators opened a door to foreign stock exchange representatives.
By staff reporter Wang Zhen
Furse said LSE “can be a complementary offering to the A-share” market.
Chinese companies on AIM operate in more than 20 sectors including manufacturing, services,
franklin and marshall, clean energy and finance. But no Chinese companies have listed on the Main Market since 2005.
Chinese listings on LSE currently include six companies on its Main Market and 62 on its high-growth AIM board. The average amount raised in IPOs for these 68 companies was US$ 53 million, with market caps averaging US$ 170 million.
Riding the coattails of British Prime Minister Gordon Brown’s talks with Chinese leaders in Beijing, the London Stock Exchange (LSE) opened its first representative office January 18 in Beijing -- a clear signal that the British financial market wants to lure Chinese companies by offering international liquidity, institutional investors,
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The six companies on the Main Market include Datang International Power Generation, Zhejiang Southeast Electric Power, Sinopec and Air China. All have strong government backing. Four companies listed in 2004 -- two years after the Sarbanes-Oxley financial disclosure measure took effect in the United States.
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According to LSE and Thomson Financial, the number of IPOs on LSE between 2004 and ’05 was larger than the total launched on NASDAQ and NYSE combined.
Now it’s LSE turn in China’s capital. “We chose Beijing to set up our rep office so that we can be closer to the regulators and better enhance our relationship with Beijing,
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Zhu told Caijing that the investor profile of LSE is 60 percent institutional, 20 percent from retail investors and 20 percent internally controlled by LSE staff. In contrast, the investor portfolio on the A-share market in Shanghai has a larger portion of retail investors and a smaller percentage of institutional investors.
“We are principles-based as opposed to rules-based in terms of regulation,” said LSE’s head for primary markets, Tracey Pierce. This flexibility gives companies a chance to list for fees that are far below those at NYSE and NASDAQ, she said.
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