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China's Huatai Securities plans to list in London
CHINESE brokerage Huatai Securities Co said on Tuesday it plans to list in London, potentially becoming the first Chinese company to sell shares under the long-awaited Shanghai-London Stock Connect.
Huatai Securities aims to raise at least US$500 million via issuance of global depository receipts (GDR) in the British capital to boost working capital for domestic and overseas expansion, the company said in a filing with the Shanghai Stock Exchange.
The Huatai plan was unveiled roughly one month after regulators published draft rules for the Shanghai-London Stock Connect scheme.
Under the draft rules, companies listed in the two cities can apply for floatation on each other's exchanges through the issuance of depository receipts (DRs).
The rules would allow Chinese companies to raise fresh money through issuing GDRs in London. However, London-listed firms can initially only issue Chinese Depository Receipts (CDR) backed by existing shares, meaning they cannot raise funds through Shanghai listings.
Huatai's website says it has the largest securities brokerage business in China. It also has an asset management business. REUTERS