French political turmoil is a boost for London as the Paris government teeters on the brink

London should take advantage of the political turmoil in France to boost the stock market, a leading City figure has said.

Companies and investors could turn away from Paris as the French government teeters on the brink of collapse, according to Mark Austin, partner at law firm Latham & Watkins.

And tensions between China and the United States are making listings in Asia look less attractive, he added.

Austin, one of the experts behind the City’s recent reforms, said crises abroad have inspired “a lot of consultation” about the possibility of moving capital to London as it is now “the adult in the corner of the room.” “.

His comments came as City watchdog the Financial Conduct Authority (FCA) appeared to pave the way for Chinese fast fashion retailer Shein’s controversial £50bn stock listing.

Meanwhile, investment company Pershing Square Holdings abandoned its listing in Amsterdam yesterday.

That means its shares will be listed only in London, where it is a member of the FTSE 100. Pershing cited improved liquidity in London as one reason.

But Nikolay Storonsky, head of online bank Revolut, said it was “simply not rational” to opt for London rather than listing in the United States.

There are hopes the situation is changing after the City has lost high-profile companies to foreign rivals in recent years.

Austin, a member of the Capital Markets Industry Working Group, a group of City figures led by London Stock Exchange chief Julia Hoggett, said he has seen interest in investment moving out of Europe to the United Kingdom.

Speaking on the BBC’s Today programme, he said: “We’re seeing a lot of inquiries from people thinking: ‘Actually, is continental Europe a place where I’d like to list a business at the moment?’

Elections in France, Germany and Austria have created instability, while the reign of right-wing leaders Geert Wilders in the Netherlands and Giorgia Meloni in Italy has also made investors nervous.

And companies are increasingly wary of having “exclusive exposure” to Asia, such as Hong Kong-listed firm CK Infrastructure, which held a secondary initial public offering (IPO) in London in August, Austin said. . This came two weeks after reforms to the city’s watchdog were introduced in July.

“There is a sense that the UK is starting to establish itself as an independent, well-regulated financial center in a good time zone,” Austin said.

There is growing confidence that reforms to listing rules will continue to revive the UK’s status.

The FCA reforms came into force on 29 July, creating a simplified regime that ended the distinction between standard and premium contributions.

Before this, only companies with premium listings could join the FTSE 100 and FTSE 250 indices, so the abolition of the distinction has cleared the way for more to do so.

In a memo last week, Austin said the city was ready to succeed next year. He said: “The capital cycle is approaching and although IPOs will not happen in the very near future, they will, and in numbers, starting in 2025 and 2026.”