More and more Chinese companies are exploring the potential for listing on the London Stock Exchange due to Britain's attractiveness as an innovative, open and cost-effective investment destination, the British Trade & Investment Asia Pacific Director Paul Grey said Monday in Hong Kong.

Speaking at an evening dinner hosted by British Consul-General Grey said demand from companies in the Chinese mainland is particularly strong because the regulatory environment in Britain is business-friendly and provides accessibility to international capital - more than double the funds available in New York.

"The recent listing by Air China on the London Stock Exchange at a time when the Chinese companies are seeking new sources of funding has highlighted the attractiveness of the UK as an investor-friendly destination," Grey said

London Stock Exchange Head of Asia Pacific Jane Zhu said one of the most persuasive reasons for Chinese companies to list in the United Kingdom is the similarities with financial and stock market regulations in Hong Kong - Air China use the same prospectus for its dual listing in Britain and the HK Special Administrative Region.

Another reason for the Chinese companies to list in Britain is the high standard of regulation, Zhu added. "Corporate governance standards and the UK model are based on sound principles and effective codes which compare very favorably with the ever increasing costs of regulation in the US particularly because of the Sarbanes-Oxley Act."

The London Stock Exchange also operates the Alternative Investment Market as a more cost-effective, faster and easier board for smaller but fast growing enterprises to join, Zhu said.

So far there are six Chinese companies listing on the London Stock Exchange's main board and five on the Alternative Investment Market.

Source: Xinhua