Chinese firms look to London for listings

But those looking to float in Britain will need to prove their corporate governance is up to scratch if they are to win over investors.

Chinese companies accounted for a third of all global initial public offering volumes in 2011, raising a total of £34.5bn, according to Thomson Reuters data.

The vast proportion of this was raised on Chinese exchanges, but a lengthy backlog there – and specialist knowledge of particular sectors in London – is drawing people towards the British capital, where investors are still wary after the last flurry of Chinese IPOs proved disappointing.

“Investors still want exposure to China but they were burnt a few years ago,” said one investment banker.

“There are plenty of companies that could get a London listing done, but they have to be really, really focusing on the governance as if you talk to any UK investor there will be deep concerns about governance levels ... there is a lasting suspicion you don’t necessarily get the full picture.”

Lottery operator Betex delisted from London’s Alternative Investment Market (AIM) in 2007, just 19 months after its £12.5m IPO.

Its shares had been suspended after Chinese authorities detained two senior members of staff for illegal gambling.

A spate of scandals involving Chinese companies in North America last year is also fresh in the market’s mind.