The London Stock Exchange, or LSE has opened a representative office in Beijing to attract listings from rapidly growing Chinese companies.

Two U.S. rivals, the New York Stock Exchange and the NASDAQ, opened Beijing offices in December.

Clara Furse, London Stock Exchange CEO, says the LSE is the gateway for Chinese companies wanting to get into the European zone in a cost-effective market.

"For any Chinese company that wants to internationalize, that wants to grow into that market, London listing is essential. It provides the currency to be able to do that."

Furse added that strict listing requirements would help Chinese companies improve their corporate governance and management.

Seventeen Chinese companies raised almost 2 billion U.S. dollars through London listings last year. To date, 68 Chinese firms in 20 sectors, including manufacturing, services, and clean technology, have listed on the bourse.

The LSE applied to the China Securities Regulatory Commission for the establishment of the office late last year and gained approval early this month.

Stock exchanges in Japan, Singapore and South Korea have also gained regulatory approval to open China offices.
The Singapore Stock Exchange says it will open its Beijing office early this year.