The recent overhaul of London’s listing rules has made the UK’s stock market more attractive, according to Andy Hunter, Deputy Managing Director of CK Infrastructure, the first company to list under the new regulations.
Hunter praised the reforms as “very welcome,” citing the streamlined process as a significant factor in the company’s decision to pursue a secondary listing in London.
CK Infrastructure, a Hong Kong-based conglomerate with a market capitalisation of nearly £14 billion, joined London’s main market on Monday, becoming the first firm to do so since the Financial Conduct Authority’s (FCA) comprehensive reforms came into effect at the end of July. Hunter noted that the changes have simplified both the listing process and the ongoing regulatory requirements for UK-listed companies, making London a more appealing venue for international businesses.
This move is seen as a positive sign for the London Stock Exchange, which has been working to maintain its competitiveness amidst growing concerns that it is losing business to other global financial centres, particularly New York. The reforms are part of the FCA’s efforts to revitalise the London market by simplifying the rulebook and attracting more companies to list in the UK. However, the changes have not been without controversy, as they reduce some investor protections, prompting warnings that they could undermine the UK’s reputation for high governance standards.
Despite these concerns, CK Infrastructure’s decision to list in London, rather than considering other markets, underscores the appeal of the UK under the new rules. The company, which has a significant presence in the UK through its ownership of assets such as Northumbrian Water and UK Power Networks, viewed a London listing as a natural progression after two decades of investment in the country.
Hunter also expressed confidence in the UK’s new government, led by Labour, stating that CK Infrastructure believes the current administration will foster a favourable environment for investment. This endorsement comes as Chancellor Rachel Reeves actively seeks to attract foreign investment to bolster economic growth, recently engaging with major investors in New York and Toronto.