An intriguing story by Sky’s (and the FT’s) Mark Kleinman this morning, who is following the UK prime minister in China.
Mark reports that Shell is planning to list its shares on the Shanghai stock exchange, and has even appointed China International Capital Corp to help it do so.
The oil giant Royal Dutch Shell is drawing up plans to list its shares on mainland China’s biggest stock exchange as part of efforts to forge deeper ties and expand its operations in the country.
The news that Shell is looking at listing in Shanghai when reforms allow such a move comes in the same week that it signed a co-operation agreement with PetroChina, a state-owned oil company, to explore energy projects in Canada and China.
But a word of warning. As Mark acknowledges, if this happens, it is a long way away. China still needs to pass laws to open up its stock markets to foreign companies, and from what I understand from City sources, HSBC is the frontrunner to be the first company to list if and when it does.