China and Britain yesterday signed a long-awaited memorandum of understanding allowing mainland companies to list on the London Stock Exchange.
British Treasury Economic Secretary Angela Knight said: 'I look forward to the first listing on the London Stock Exchange (LSE) of a major Chinese company shortly, and I trust there will be many more.' Ian Salter, deputy chairman of the LSE, said: 'This is the first memorandum of understanding [China has] done with anyone in Europe. It's very promising.' Authorities did not specify which mainland firms will seek London listings although Datang Power is widely tipped as a strong candidate.
'The signing . . . will provide a channel for co-operation among China and UK securities and futures regulators,' officials said after a brief ceremony at the Great Hall of the People.
The memorandum was signed by China Securities Regulatory Commission (CSRC) chairman Zhou Daojiong and authorities from the Treasury and British regulator the Securities and Investments Board.
The British Embassy in Beijing said: 'China will inevitably make more progress in utilising international capital markets.' Agreement on terms of the memorandum of understanding was reached after a September 5 visit to Beijing by Britain's Board of Trade president, Ian Lang.
About 24 Chinese companies have raised US$4.4 billion in overseas listings and foreign share issues in Hong Kong and New York.
