Reuters reported that UC RUSAL's planned USD 2.6 billion stock float in Hong Kong is likely to spur more Russian resource firms to tap Chinese markets for the investment required to bring ambitious projects into production.

Mr Ewan Thompson fund manager of Neptune Emerging Markets who met recently with Rusal's management, said that “I certainly don't see it as a one-off. One of the things that we see as an ongoing trend is the integration of emerging markets with themselves. China is short of various key commodities and oil would be one case where we could see Hong Kong listings.”

Since the emergence of joint stock companies and local stock exchanges in the 1990s, Russian firms have overwhelmingly favoured London as the bourse of choice for foreign listings.

However, analysts and investors said that should RUSAL's Hong Kong offering prove a success other Russian firms will follow as Asia's financial clout increases.

Mr Roland Nash head of research at Renaissance Capital said that Russia is the biggest country in Asia, but there is very little Asian money in Russia and I think that is going to change.

(Sourced from Reuters)