It looks as though lots more Chinese companies are going to be choosing London as the top destination to float. This follows the first agreement promoting two-way investment between China and a European capital city. Under the agreement, Beijing’s Ministry of Commerce will point Chinese companies towards London as a profitable centre for investment.
Targets will include financial services, IT, biotechs, pharmaceuticals and energy industries. To ease the path the agency will highlight London’s favourable business environment, regulations and policies – and what we could well see is an influx of Chinese companies looking to list on Aim.
Already, a third of all Chinese investment in the UK goes to London – that is 15% of the total for Europe, and that figure looks set to grow further.
Most of the money raised through listings of Chinese companies has until now been via privatisation of state owned groups. Things are now set to change, as private sector groups come to market.
For the first time we are seeing private wealth amassing and coupled with that is the rapid growth and successful development of private companies.
There is plenty of scope to gain exposure to China on Aim. One company that springs to mind is China Goldmines, which is looking for gold in the Hunan province of the country.
The area could potentially hold over 1 million ounces of gold, and the company intends to be a dominant mining house in central China.
CEO Frank Vanspeybroeck said, “We are very pleased to announce since the commencement of our exploration activities in April this year the results to date far exceed our expectations.”
The results also indicate that the gold is of a high grade, and Vanspeybroeck looks forward to accelerating the drilling programme this year, as a pre-cursor to the feasibility study.
Things are certainly looking interesting for China Gold – the price is currently 88p on the offer, having reached a peak of 141p in May last year – with more positive news there is no reason why we wouldn’t see the price back up to these levels and perhaps beyond.
Regards,
Melissa Carroll
for The Penny Sleuth
