A sign is pictured on a wall outside the entrance to the Londson Stock Exchange in central London on March 4, 2016. AFP / LEON NEAL
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Proposed changes to Britain's listing regime are likely to attract a series of state-backed companies to London's stock markets as governments in oil rich states prepare for a wave of asset sales. However some investors and corporate governance groups say Britain's move to make its capital markets attractive to state-controlled firms by loosening some of the rules may lower the quality of companies on its stock exchange and leave shareholders with less protection when things go wrong.London-listed mining companies Eurasian Natural Resources Corporation from Kazakhstan and Bumi from Indonesia both left minority investors nursing heavy losses that were both blamed on dealings involving company insiders and controlling shareholders.That led to the rule changes, with such companies forced to ensure that all transactions between a controlling shareholder or their associates and the company are conducted on an arm's-length basis and on normal commercial terms.Sources said Kazakh energy company KazMunaiGas is one of the most likely state-backed companies aside from Aramco to take advantage of Britain's proposed new listing rules.That is initially expected to be a local listing that does not rule out the company tapping the London market in future.
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