Sunday 11 August 2019 10:52 am

Chinese government gives nod for SDIC plans to float in London

A Chinese state-backed energy group is pressing ahead with an initial public offering (IPO) in London after being given the green light by its goverment.

China’s State Development and Investment Corp (SDIC) is set to issue 10 per cent of its share capital as Global Depositary Receipts (GDRs) on the London Stock Exchange, giving the capital’s financial centre a much-needed boost as it prepares to leave the EU.

Read more: China warns UK against Hong Kong probe

Over the weekend the group said that Beijing’s Assets Supervision and Administration Commission had approved the planned listing.

Consent is also needed from shareholders and other securities regulators before the float can take place.

The (IPO), first reported by Reuters last month, could take place in the second half of this year.

SDIC plans to list through the much-anticipated Stock Connect scheme, a recently-launched reciprocal arrangement between the Shanghai Stock Exchange (SSE) and London Stock Exchange.

Read more: London Stock Exchange seals Refinitiv deal

In June one of China’s largest brokerages, Huatai Securities, became the first business to put its name on the Stock Connect scheme, sparking hopes that dozens of other Chinese companies would follow suit.

Its launch comes as the City ramps up its efforts to strengthen ties with non—European countries ahead of Britain’s imminent departure from the EU.