Shanghai Pushes Deals To Quietly Challenge New York
China is quietly chasing deals with Brazil, Russia and other big emerging-market stock exchanges to allow cross-listings, part of its drive to turn Shanghai into a financial center rivaling New York.
The Shanghai Stock Exchange and Brazil's BM&FBovespa, Latin America's top securities exchange, inked a pact in February that many believe will lead to cross-listings. If that happens, Brazilian giants like iron ore exporter Vale (VALE) could list yuan-denominated shares in Shanghai and access Chinese capital. Chinese firms could list in Brazil.
Gary Kleiman, an emerging-markets analyst, says China is informally discussing similar cross-listing deals with Russia and various Southeast Asian countries.
"You already have major Russian and Brazilian listings (in Hong Kong dollars) on the Hong Kong Stock Exchange," said Kleiman, who runs D.C.-based Kleiman International. "It would make sense to carry some alliances and cross-listings generally into (China's) securities sphere."
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