Standard Chartered CEO: Still Interested In Shanghai Listing
04 Agosto 2010 - 9:12AM
Dow Jones News
Standard Chartered PLC (STAN.LN) remains interested in listing
in Shanghai following its recent flotation in India, although the
timing will depend on Chinese authorities, the bank's chief
executive said Wednesday.
The bank also said that it could eventually move its base out of
London, although no such plans are underway at the moment.
Earlier Wednesday, Chairman John Peace warned that the bank is
concerned new regulation and taxes are being introduced differently
across the world, and that "U.K. banks could be put at a
disadvantage to those elsewhere."
"No doubt the argument for London has weakened," CEO Peter Sands
told a news conference.
"[Moving] is something we have to think about," he added.
Sands also said he expected the bank to show the benefit from
higher interest rates in some countries in 2011, helping net
interest margins that have been squeezed lately.
In line with its peers, Standard Chartered has felt the impact
of higher costs of borrowing and lower lending rates in the wake of
the financial crisis and economic downturn.
The bank derives more than 90% of its income from emerging
markets in Asia, Africa and the Middle East, and already has
listings in London, Hong Kong and India, becoming the first
international company to get a primary listing there in May.
At the time the bank said it was enthusiastic about doing the
equivalent in Shanghai.
China's country's State Council is currently drafting rules and
setting up a board that would help process the listing of Chinese
Deposit Receipts or A-shares of big overseas companies onto the
Shanghai Stock Exchange.
Several other financial institutions, among them HSBC Holdings
PLC (HBC) and the London Stock Exchange Group PLC (LSE.LN), are
weighing up flotations in the country.
-By Patricia Kowsmann, Dow Jones Newswires; +44 207 842 9295;
patricia.kowsmann@dpwjones.com
(Marietta Cauchi contributed to this article.)