THE mix of financial advisers selected for the 22 mainland enterprises to be listed overseas is a reflection of the changing political relationships between China, the United States and Britain. It is hardly a coincidence that US investment houses are said to be the front-runners to secure the lucrative underwriting jobs for the second batch of H-share listings in the coming year. Goldman Sachs, Merrill Lynch, Lehman Brothers, Morgan Grenfell and Morgan Stanley (which has no experience in mainland flotations) are all expected to be at the front of the queue helping to list the China enterprises. At the other end of the scale, Standard Chartered Asia and Jardine Fleming, whose parent recently invited the wrath of the Beijing officials with its decision to de-list from the Hong Kong stock exchange, are likely to obtain only one or two underwritingjobs. Compare this with the listings for the first batch of H shares, the original China Nine, which saw the British houses including Jardine Fleming, Wardley, Standard Chartered and Warburg win the lion's share of the work. The reversal in the fortunes of the US companies at first looks odd, considering the gnawing Sino-US problems over China's Most Favoured Nation (MFN) status and trade disputes. But closer inspection reveals a shrewd long-term strategy on the part of Beijing to repair the rift with the US. By choosing American expertise to help float the second batch, as well as listing several enterprises directly on the New York exchange, China is luring US money and US investors. The closer the links the more difficult it becomes for the Clinton administration to carry out its threatened non-renewal of MFN. Unlike last year, when Beijing was seen to be cautious in allowing mainland enterprises to go to foreign exchanges beyond Hong Kong, Beijing appears now to be forthcoming in allowing - if not urging - mainland firms to New York. This is even more obvious given the fact that the airline industry (in the form of China Eastern and China Southern Airlines), which until now had been wholly owned by the country, has been granted approval to go overseas. Politics seem to have played a role in selecting underwriters for the mainland companies. It may be argued that, given the American companies' expertise and familiarity with the US market, they are the natural selection for enterprises seeking a New York listing. However, it fails to explain why a lot others looking for a Hong Kong listing also choose American underwriters. Some argue that the London stock exchange, given its international status, is also an ideal place for overseas listing, but not one enterprise in the second batch is going to London. Underwriting is the most lucrative part of the listing process for mainland companies: the bigger the issue, the more money is generated. It appears that the American firms have already got the cream of the whole business and China, for once, will not mind.