THE London Stock Exchange has struck a deal with Haitong Securities to promote Chinese flotations on London markets, the two companies said yesterday.
Under the memorandum of understanding, they will embark on a range of moves, including helping Chinese investors access the LSE’s capital markets, and developing yuan exchange-traded funds tracking Chinese securities.
The companies will also look at opportunities for cooperating on new index and derivatives products.
There are currently 57 Chinese companies listed in London, of which only eight are on the main market.
“As China’s capital markets gradually open up, an increasing number of Chinese enterprises are seeking overseas development,” said Wang Kaiguo, chairman of Haitong Securities.
Earlier this week, top bourse officials said China offered better growth prospects for stock and derivatives exchanges as making money in mature Western markets becomes tougher due to overcapacity.
Haitong is China’s second-largest brokerage by assets, behind CITIC Securities, and is among the country’s top underwriters for initial public offerings.
Haitong last month raised US$4.2 billion from a group of seven investors to increase its margin finance and other lending business.