a Abstract of the 2 Lujiazui Finance Salon
from http://www.ljzfc.org/UploadFiles/pdf/8406.pdf
A Staggering Success Story in World’s Finance Market: the City of London
Speaker: L , Alderman John Stuttard
3.5 trillion, over 600 foreign companies listed in the London Stock Exchange,
and 34% of global currency trading, London is the most international and most liquid of all the
Here are some primary factors for London’s staggering success.
1. O
egulation of the
e contributed enormously to the success of the financial sector
(2) A large proportion of our talented people come from abroad. These people from all over
2
the UK
(2) Continually simplify the tax regime (such as reducing corporate tax rate) and keep it
f the Bank of England has helped to ensure a stable and successful
macro-economy
uthority created a single, business-friendly regulator for all
financial services. It put the emphasis on improving corporate governance rather than on
3. N
(1) The exciting derivatives market
(3) London is the world’s largest carbon emissions market and the global centre for emissions
T egulatory environment is that foreign
financial companies have flocked to London. It’s a successful and expanding market which is ideal
for Chinese companies to raise capital.
1. The City is the most international of all the world’s stock exchanges
(1) In 2006, 367 new companies joined the LSE whereas the combined total for NYSE,
NASDAQ and Hong Kong SE together was 332. US$104 billion was raised on the LSE,
compared to US$69 billion on NYSE and NASDAQ combined
ord Mayor of the City of London
(transcript not reviewed by the speaker) With funds of over £
world’s financial centres.
penness of market entry and competition
(1) “Big Bang” in 1986 led to the removal of restrictive practices and a dermarket. Foreign capitals hav
the globe add greatly to the success
. The fiscal environment
(1) Foreign nationals working in the UK are not taxed on income arising outside
competitive (3) The independence o
(4) The Finance Service A
introducing detailed rules
ew financial instruments and new areas of business that have been created
(2) The fast-growing Islamic banking and insurance market
trading
he result of this open market access and the favourable r
1
2
6 billion was raised on the LSE, compared to US$21 billion
combined in NYSE and NASDAQ
2. The City can offer a range of listing options tailored to companies with different needs
(2) Alternative Investment Market (AIM): It’s designed to bring young and growing
attention of global investors
nvesting in
panies
rivate equity and
erts in the City can explain to Chinese companies how to exploit the UK’s global
orks
C
T
s
• a reputation for probity, innovation and access to other markets
If Shanghai or anywhere else would be a successful financial services hub, you must attract
potential investors. The City of London is the place where China should look to make its huge
foreign exchanges work even better to help reach the goals of the eleventh Five Year Plan.
(2) In first half of 2007, US$2
(1) The London Stock Exchange’s Main Board
companies to the
(3) PLUS markets group
3. The City’s Venture Capital firms and Private Equity houses are very interested in i
Chinese com
4. The City has unparalleled expertise in raising capital, mergers & acquisitions, p
SME financing
5. The exp
connection to develop international netw
onclusions:
heelements which London found work best are:
• good principles-based regulation
• non-punitive taxation
• a warm welcome for firms from all over the world
• access to skills and qualifications for people from many different background• rapid access to those allied services you need • attractive, safe and clean working environment