Two of the world's leading stock houses are teaming up to seek a
dual listing of the shares that they are now posting individually
in a move to improve their competitive edge and attract more
high-profile companies and investors into their markets.
Earlier this year, the Hong Kong Exchanges and Clearing Limited
(HKEx) and the London Stock Exchange began working together to make
it easier for companies to list in both Hong Kong and the United
Kingdom.
In
addition, the exchanges plan to introduce the trading of HKEx
stocks on London's SETS trading system and London stocks on Hong
Kong's trading system.
The strategy is believed to be a key step to cement the positions
of both firms in the current market, where alliances and
collaborations are an inevitable trend.
Insiders also see the plan as a way to lure more China-based large
companies to raise money on their markets, as a dual listing would
give the companies planning an initial public offering (IPO) access
to capital markets in both Asia and Europe.
The competition to persuade high-profile Chinese companies to go
public on overseas markets turned fierce as top officials with most
of the world's leading capital markets - including the Hong Kong
Stock Exchange, the Singapore Exchange, NASDAQ and the American
Stock Exchange - rushed to Beijing this week, in anticipation of
lobbying these companies to list on their market.
"Listing on our market will be much more cost-effective (than other
choices)," said Marc Bailey, director of the business development
department of the London Stock Exchange, who is on his first trip
to China.
"We will continue our efforts to extend cooperative relations with
the other two Chinese stock exchanges," said Bailey, adding that
the two parties have not yet made any concrete decisions.
Both exchanges will now meet with their market participants to seek
their views on the proposed trading arrangements. A listing
facilitation program is being developed to enable companies listed
on one exchange to list on the other through a streamlined
process.
"If a sufficiently attractive business case can be developed, the
exchanges would seek to introduce the trading collaboration in
2003," but subject to regulatory approval, said both companies in a
news release.
(China
Daily May 25, 2002)