Lord mayor pitches LSE to China banks

The new lord mayor of the City of London believes Bank of China and Industrial and Commercial Bank should seek secondary listings in London and argued the case for the listings to President Hu Jintao last week.

David Brewer took over on Friday as the 678th mayor of the one square mile that contributes #30 billion ($405 billion) a year to the British economy, or 3 per cent of its gross domestic product.

In a telephone interview before he took up his appointment, Mr Brewer said the two mainland banks would be able to raise all the money they needed in Hong Kong, but that a listing in the leading international market would give them prestige.

Five Chinese firms are listed on the main London Stock Exchange (LSE) and 14 on the smaller Alternative Investment Market.

The LSE has been lobbying the two banks to come to London. A western banker who met senior managers of the two banks in Beijing this month said they had ruled out New York as overregulated and too legally complicated and because the political environment in the US was unpredictable.

'The treatment of CNOOC in its attempt to buy Unocal was not at all fair,' Mr Brewer said.

'It was not a good example. There should be an even playing field. We ask for access for western firms to buy into China and then have it turned round. It was not in keeping with the rules of international trade. Chinese firms are welcome here.'