With the rapid development of China’s economy, since the policy of reforming
and opening-up was executed 20 years ago, China has become more involved
in the global economy system. More and more Chinese companies started to
enter the international stock markets for capital raising. Going public in the
international stock exchanges is a good way for Chinese companies to get
investments and capital to expand their business.
Today, about 70 Chinese companies have been listed on Hong Kong Stock
Exchange, New York Stock Exchange etc. Most companies selected Hong
Kong as the main stock market for capital raising due to the advantages and
easy operation in Hong Kong. Now, over 300 new Chinese domestic
corporations have applied and are waiting for the permission to list on Hong
Kong Stock Exchange. But the process to get the permission will last over one
and half a years. This is too long for those companies that are in urgent need of
international capital. Many companies started to pursue capital from other
international markets.
There are many other options for Chinese companies to issue shares. But, in
this thesis, only listing on the London Stock Exchange is to be researched,
mainly because London can be taken as the representative of European stock
markets, and the writer of this thesis is going to do some research related to
China and Europe purposely.
This thesis provides the basic knowledge of London Stock Exchange, and
describes the general matters related to listing on London Stock Exchange
including listing requirements and procedures. Furthermore, it conducts an
analysis of the possibility and feasibility of Chinese company’s listing in
London, based on a integrated comparison to the listing on Hong Kong Stock
Exchange. Its objective is to help Chinese companies get a better understanding
of London Stock Exchange.
The analysis of empirical findings shows that London is a suitable stock market
for Chinese companies. Lon...
