The London Stock Exchange (LSE) opened a representative office here on Friday with the goal of attracting listings of rapidly growing Chinese companies.

Two U.S. rivals -- the New York Stock Exchange (NYSE) and NASDAQ -- opened Beijing offices in December.

The LSE is the gateway for Chinese companies wanting to get into the euro zone and the market is cost-effective, said Clara Furse, the LSE's chief executive officer.

Strict listing requirements would help Chinese companies improve their corporate governance and management, Furse added.

British Prime Minister Gordon Brown cuts a ribbon for the opening of a representative office of the London Stock Exchange in Beijing Friday, Jan. 18, 2008.  The LSE has stepped up competition with American-based markets to attract listings from the growing number of Chinese companies that are expanding abroad. (photo: Shanghai Daily)

Chinese companies could seek partners in Europe and other regions of the world through the LSE, said Jiang Nan, representative of the LSE's Beijing office.

Seventeen Chinese companies raised US$1.9 billion through London listings last year. To date, 68 Chinese firms in 20 sectors, including manufacturing, services, and clean technology, have listed on the bourse.

"The LSE does not focus on any special sector. We have an open mind," said Furse. She added that several Chinese companies were preparing for LSE listings.

The LSE applied to the China Securities Regulatory Commission for the establishment of the office late last year and gained approval early this month.

Stock exchanges in Japan, Singapore and the Republic of Korea have also gained regulatory approval to open China offices.

The Singapore Stock Exchange has said it would open its Beijing office early this year.

(Xinhua News Agency January 19, 2008)