LSE’s chairman Chris Gibson-Smith and Asia-Pacific head Jane Zhu at the opening of its regional office in Hong Kong . The new five-person office hopes to attract more mainland firms to dual list in London

The London Stock Exchange (LSE) opened its regional office in Hong Kong, a move seen as an ongoing commitment to the Asia-Pacific region with the Chinese mainland as one of its key target markets.

The Exchange’s chairman Chris Gibson- Smith said: “Hong Kong for all the obvious reasons is simply the best city in the world to do business and the natural place to access the region.”

The new five-person office will work to attract more mainland enterprises to dual-list in London. “We believe now is the time to have an office in Hong Kong. China’s economic miracle has barely begun and is not about to be over. Mainland companies are not just satisfied with expansion but globalisation as well.

“As the world’s most international financial centre, we believe London is the natural home for dynamic, growing Chinese and Asian companies looking to attract international capital,” said Mr Gibson-Smith. 

Complementary role

LSE – Europe’s biggest bourse by market capitalisation – has some distance to cover before it becomes a major source of capital for mainland firms. Currently, there are only six mainland firms listed in LSE compared to more than 280 mainland enterprises listed in Hong Kong and more than 20 in the US. The New York Stock Exchange, the world’s largest, already has an office in Hong Kong 

“LSE is complementary to the Hong Kong Stock Exchange. Hong Kong is obviously the main avenue for mainland companies to raise funds but London is a good alternative for companies that wish to list in Hong Kong and an international market. LSE will help mainland enterprises to globalise their financing and tap into the European markets,” said Mr Gibson-Smith.

A plan to use a single prospectus regime – a single listing document acceptable to both the Hong Kong and British authorities – to encourage more cross-trading and cross-listings between the two markets has been scrapped.

“The plan has ended due to complex regulatory issues but that does not mean our relationship is over,” said Mr Gibson-Smith. “LSE and HKSE have been friends for many years and will continue to be friends in future.”

Related links

Hong Kong Stock Exchange

London Stock Exchange