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Enoch Yiu

The stock exchange may want to consider listing in New York to strengthen the partnership between it and the New York Stock Exchange, according to NYSE chief executive Richard Grasso.

 'It would be a wonderful opportunity for the stock exchange to list on the New York Stock Exchange' as the move would further broaden its investor base, Mr Grasso said yesterday in Hong Kong.

  The NYSE - the largest exchange in the United States - would also consider listing on Hong Kong's exchange if it decided to go ahead with a demutualisation plan, said Mr Grasso, who is also the NYSE's chairman.

  Mr Grasso discussed with Hong Kong stock exchange chairman Lee Hon-chiu market developments and the demutualisation trend of stock exchanges.

  Under the Hong Kong stock exchange's demutualisation plan, it will merge next year with the futures exchange and three associated clearing houses into Hong Kong Exchange and Clearing (HKEC).

  The HKEC plans to list in Hong Kong by September, next year.

 The NYSE requires a listing applicant to have market capitalisation of US$1 billion.

 Under this requirement, the HKEC would need to have a price-earnings ratio of about 15 times, or HK$8 a share, according to brokers.

 Mr Grasso said about 3,000 non-US publicly listed companies worldwide were qualified to list on the NYSE but were not listed.

 This is six times the number of US companies listed on other US exchange that were qualified to list on the New York exchange.

 Of these non-US companies, he said, up to 300 were from Hong Kong and the mainland.

 Mr Grasso said the NYSE was working with the China Securities Regulatory Commission in an effort to enhance opportunities for mainland enterprises to list on the New York exchange.

 Mr Grasso said he did not believe the recent lacklustre response by investors towards the initial public offering of CNOOC reflected a lack of interest in mainland companies.

 The NYSE did not 'look for quick success', Mr Grasso said.

 'We are seeking a long-term development for mainland enterprises to list on the NYSE,' he said.

  On other topics, Mr Grasso said the Nasdaq market in the US - the country's second-largest - did not pose a threat to the NYSE because there was little overlapping.

 He pointed out that many of the high-technology companies listed on Nasdaq did not meet the NYSE's listing requirements.

  Mr Grasso also said the NYSE might extend trading to about 20 hours a day next year, adding a morning session and a late session.

 He believed most markets would probably introduce 24-hour trading within the next few years.

STOCK EXCHANGE 



NYSE chief suggests reciprocal move possible in wake of demutualisation