Beijing Power Generation Co is set to become the first mainland company to be listed on the London Stock Exchange after reviving its long-delayed, H-share flotation. The company, under China's Ministry of Electric Power and hived off from North China Power (Group) Co, is among the second batch of 22 overseas listing candidates announced in 1994. It is believed that Beijing Power, sponsored by United States investment bank Salomon Brothers, will seek a listing in London through global depositary receipts by the end of the year. The Hong Kong stock exchange will remain its primary regulator. A source said the dual listing, which aimed to raise about three billion yuan, was pending a memorandum of understanding between the securities regulators in Beijing and London, which was expected to be signed next month. Analysts from potential underwriters are said to have visited the company's management. China has allowed four mainland power firms to issue shares abroad. Shandong Huaneng Power and Huaneng Power International have been listed in New York. Both counters have been plagued by sluggish trading since flotation, with Shandong Huaneng trading below its issue price. Beijing Power and Shandong International Power Development have held up their flotations after the state tightened its grip on tariff increases in its fight to curb inflation. Beijing Power officials have said that it would use the listing proceeds to boost its electricity-generating capacity by 2,400 MW in an expansion programme up to 1998. It has interests in power plants in Gaojing, Douhe and Xiahuayuan and Shalingzi. Hopes to list in London were boosted after the London Stock Exchange sought to attract mainland companies following a high-profile seminar in Beijing earlier this year. According to BZW Asia, the London exchange is more globalised than its New York counterpart. International companies account for nearly two-thirds of London's market capitalisation, while they make up only 5 per cent in New York. London also boasts the most international banks. CITY CALLS Listing to be made through global depositary receipts by the end of this year Hong Kong stock exchange will remain primary regulator
