LONDON/HONG KONG (Reuters) - The London Stock Exchange (L:LSE) has struck a deal with securities firm Haitong Securities (SS:600837) to promote Chinese flotations on London markets, the two companies said on Wednesday.
Under the memorandum of understanding, the two groups will embark on a range of moves, including helping Chinese investors access the LSE's capital markets, and developing renminbi exchange traded funds tracking Chinese securities.
The companies will also look at opportunities for co-operating on new index and derivatives products.
There are currently 57 Chinese companies listed in London, of which only eight are on the main market.
"As China's capital markets gradually open up, an increasing number of Chinese enterprises are seeking overseas development," said Wang Kaiguo, chairman of Haitong Securities.
Earlier this week top bourse officials said that China offered better growth prospects for stock and derivatives exchanges as making money in mature western markets becomes tougher due to overcapacity.
Haitong is China's second largest brokerage by assets, behind CITIC Securities, and is among the country's top underwriters for initial public offerings (IPO).
The securities firm last month raised $4.2 billion from a group of seven investors to increase its margin finance and other lending business. That followed a series of share sales by Chinese brokerages, banks and insurers in Hong Kong set to make 2015 the busiest year for the financial services sector there since 2010.