London Stock Exchange Weighs Listing On Shanghai Exchange
28 Giugno 2010 - 2:16PM
Dow Jones News
The London Stock Exchange Group PLC (LSE.LN), which is
diversifying and expanding its services beyond Europe, is looking
at possibly listing in Shanghai.
"We remain open minded on it and we continue to follow
developments. It would be some way off because you would need the
international board to be established first and still look at the
costs and benefits of a listing in Shanghai," a spokesperson said
Monday.
China's State Council is currently drafting rules and setting up
a board that would help process the listing of Chinese Deposit
Receipts or A-shares of big overseas companies onto the Shanghai
Stock Exchange.
"It [a Shanghai listing] is something that we haven't ruled out,
but it would be logistically impossible for at least a year and a
half anyway," he said.
The comments come after LSE Chief Executive Officer Xavier Rolet
said Saturday at a conference in Shanghai that it was his "deep
hope and secret forecast" that the LSE will be allowed to list on
the Shanghai market before the end of 2011. Rolet didn't
elaborate.
The LSE spokesman said Monday that Rolet expects the
international board to be ready by the end of next year.
Once ready, that board is expected to see listing applications
from companies like HSBC Holdings PLC (HBC), Standard Chartered PLC
(STAN.LN) and NYSE Euronext (NYX), which have been reported to be
interested in listing in Shanghai.
Big Hong Kong companies like the Bank of East Asia Ltd. (BKEAY)
and Hutchison Whampoa Ltd. (HUWHY) have also been reported to be
keen on listing in the Chinese mainland.
Analysts at Oriel Securities said Monday a that Shanghai listing
for the LSE "would provide access to local demand, which is likely
to grow faster than in the West."
"The other interpretation is that a local listing would aid a
merger or joint venture with an Asian exchange. Such a move would
help to offset the relative strategic disadvantages of being
geographically confined to the U.K. and more recently, Italy, and
not having a derivatives business," Oriel said.
Oriel said LSE's shares "have been languishing in the face of
tougher competition from alternative venues and the ongoing dearth
of corporate activity" and that "it would be surprising to see much
of a rally in the shares until trading volumes increase, which they
have not done yet."
Rolet's comments in Shanghai come just two weeks after saying
that the LSE plans to establish a pan-European equity derivatives
exchange within nine months, pitting itself against
more-established European players like NYSE Euronext's Liffe and
Deutsche Boerse's (DB1.XE) Eurex.
The LSE, which also runs Italy's Borsa Italiana, has been trying
to become a leaner organization with a more diversified business, a
crucial strategy in the face of rivals that are eating into the
LSE's equities-trading business, which remains its biggest profit
contributor.
- By Vladimir Guevarra, Dow Jones Newswires. Tel. +44 (0)
2078429486, vladimir.guevarra@dowjones.com
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