CHINA AND UK PLEDGE ACTION ON LISTINGS

China and the UK yesterday pledged to take swift action to allow companies to list on overseas exchanges, as the two nations attempted to bring political impetus to long-promised reforms.

A Chinese economic delegation to London, headed by Wang Qishan, vice-premier, said it would open the door to UK companies wishing to list on the Shanghai stock market – but did not say when that would happen.

The move emerged as one of the key outcomes of a summit with Alistair Darling, chancellor, that sought to strengthen UK ties to the “motor of global growth”. Mr Darling said the visit would boost trade opportunities in areas ranging from green technology to aerospace.

British officials saw the developments on liberalising access to stock markets as an important notice of intent, giving political weight to the Shanghei stock exchange's cautious plan for increasing foreign investor participation. They said HSBC would be in the first wave of groups seeking a listing, should rules permit.

Shanghai authorities said this month their aim was to allow “qualified foreign firms” to issue A shares “at an appropriate time”. Full implementation is expected to be some years away.

A joint statement said: “China agrees to allow qualified foreign companies, including UK companies, to list on its stock exchange through issuing shares or depository receipts in accordance with relevant prudential regulations.”

Officials are more optimistic that regulatory restrictions on Chinese companies listing in the UK will soon be lifted, allowing some Chinese groups to issue shares within months. About 70 Chinese companies listed in London before regulatory constraints were applied.

Britain reiterated its commitment to reform international financial institutions to better reflect “changing weights in the world economy”. After many years of blocking moves to give China more voting rights at the International Monetary Fund, Britain has thrown its weight behind reforms of IMF governance from 2010.

Mr Darling's team saw the meetings as reflecting the improvement in relations.

The Chinese made no mention of Britain's parlous public finances, and raised no concerns about investing in gilts. But the talks included forthright comments on the causes of financial instability and lessons for regulators in both countries.

China has established a “procurement mission” to Britain as it seeks to reach a bilateral trade target of $60bn by 2010.

Mr Wang highlighted technology exchanges in the energy sector, saying the UK and China would conduct “exchanges” on nuclear and offshore wind power.