The investment by China Investment Corporation in Friday’s flotation of the Moscow Exchange carries several messages for observers seeking to understand the investment approach of China’s sovereign wealth fund.
Russian initial public offerings have a tendency to flop. But not so that of the Moscow Exchange, the epicenter of the country’s financial markets.
Russia’s main stock market began trading on its own platform on Friday after raising Rbs15bn ($499m) in an IPO that organizers say was oversubscribed. Positive news and perfect timing: Vladimir Putin is hosting a meeting of G20 finance ministers in Moscow today where he will be flagging the merits of the Russian capital as a budding global financial center.
By Ben Aris of bne
Russian President Vladimir Putin has started his second stint of two possible terms as president by launching a sweeping programme of reforms. Changes to the financial system are the most advanced and possibly the most important.
Putin met with senior officials to discus the development of the financial markets on Friday January 25. Two things came out of the meeting: changes to the market regulator, and a renewed privatisation effort.
The Moscow Exchange is planning to float shares on its own platform in an initial public offering that will fly the flag for Russia’s principal stock trading venue.
By opting for an exclusively domestic listing, the exchange hopes to boost the appeal of Moscow as a financial center and encourage more Russian companies to forgo the attractions of the London Stock Exchange and go public at home.