London capital markets advisers are struggling to help Chinese companies shape up for London listing because they face major communication problems which undermine their ability to guide these clients through the process.
This is according to accountancy firm Moore Stephens, which found that almost two-thirds (64%) of UK-based AIM advisers say they face difficulties communicating with Asia-Pacific and Chinese companies listing on AIM.
Moore Stephens says that rather than this being a language issue, it is lack of a clear point of contact within companies, the absence of a UK office or failure to appoint UK-based executive directors on the part of Chinese businesses that are often key factors.
It adds that while encouraging more Asia-Pacific and Chinese companies to list in London should be a major opportunity for both investors and businesses, communications difficulties mean the system is not working as well as it needs to, because many businesses are not sufficiently investor-ready.
For example, according to Moore Stephens, having a UK office is still relatively rare among Chinese AIM-listed companies.
Moore Stephens head of capital markets Marty Lau says: “Many Chinese companies simply do not realise that weaknesses exist - partly because without a UK base they are not sufficiently close to the action. Setting up offices here and appointing UK-domiciled executive directors could make a big difference, providing a clear point of contact in an accessible location.
“Not only would this make it easier for advisers to guide clients more effectually, opening up communications access could improve transparency and give a vital boost to investor confidence.”