HUATAI Securities Co., China’s third-largest brokerage by market value, and Bluestar Adisseo Co. are among the Chinese firms considering U.K. listings as authorities prepare a trading link between the two countries, people familiar with the matter said.

Huatai, which has a market capitalization of about US$16 billion, has asked investment banks to pitch for a role on a potential sale of global depositary receipts (GDRs) in London, according to the people. It is considering selling GDRs as soon as this year, the people said.

The firm could seek to raise the equivalent of at least several hundred million dollars, though a precise size hasn’t been decided, two of the people said. Any deal would be complicated by the fact that the company’s stock is already available to international investors in Hong Kong, where it trades at a discount to its Shanghai-listed shares, the people said.

Talks about listing GDRs in London come as authorities in Britain and China move closer to starting what’s known as the London-Shanghai link, a system that will see companies from each country list shares in the other nation’s stock market. While Chinese policymakers have said the aim is to start the program this year, no firms have announced their participation.

Bluestar Adisseo, a Chinese animal nutrition firm, is separately weighing a GDR offering in London that could raise about US$500 million, the people said. The company, controlled by China National Chemical Corp., is discussing the possibility with potential advisers, according to the people.

No final decisions have been made, and there’s no certainty the deliberations will lead to any deals, the people said. The precise structure of the offerings remains unclear, and they could be delayed due to the novelty of the transactions, the people said.

Foreign companies have raised US$4.7 billion in U.K. equity offerings this year, down from US$11.6 billion during the same period in 2017.

Chinese authorities have been preparing a trading link with Britain as part of a broader effort to increase access to the country’s financial system. In the works since at least September 2015, the program will give offshore investors the chance to buy Chinese companies on the London Stock Exchange (LSE).

Firms worth at least 20 billion yuan (US$2.9 billion) and already on the Shanghai Stock Exchange can apply to list on a newly created trading venue in London, according to an LSE presentation from May. (SD-Agencies)