AIM set to win new overseas admirers

The UK is becoming an increasingly attractive proposition for overseas firms looking to invest, according to a leading expert.

London's Alternative Investment Market, in particular, is capitalising on a growing willingness among emerging economic forces such as India and China to list in the UK, says First State Investments' Paul Jourdan.

In an interview with Reuters, Mr Jourdan makes clear that the domestic stock exchange is set to become a hub for overseas firms, with the impact of demanding new corporate legislation in the US likely to exacerbate the trend.

"We would expect to see India and China companies listing on AIM in the next few years," he commented.

In the US the Sarbanes-Oxley Act has tightened up the rules governing firms listing on the other side of the Atlantic in the wake of the Enron accounting scandal, meaning some firms prefer the less onerous compliance needs in London.

A record 129 overseas firms listed on the London Stock Exchange in 2005, marking a new high since the turn of the century.

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