For years, Hong Kong, the United States and London have been popular destinations for the mainland's State-owned companies to raise funds, especially when the mainland stock market was in a four-year slump.

For example, Nasdaq Stock Market data shows there are now 41 Chinese mainland companies listed on the Nasdaq Stock Market with nine firms listing there last year. Soon, the Chinese companies are likely to account for the most non-U.S. companies on the Nasdaq Stock Market, said Eric Landheer, Nasdaq's head of Asia Pacific last month.

But the rapidly expanding mainland market after successful securities reforms in 2005 and an injection of cash inflow into mainland bourses are increasingly creating a suitable environment for companies to issue A-shares. On April 10, the total value of the mainland market hit 13.77 trillion yuan (US$1.8 trillion), for the first time exceeding Hong Kong's 13.69 trillion yuan.

To lure more Chinese companies to their markets, world leading bourses including NYSE Euronext, Nasdaq, London Stock Exchange and Deutsche Borse are all preparing to set up representative offices in the Chinese mainland, when regulations that take effect on July 1 allow them to do so.

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