http://192.168.2.6/english/1117/俄资疯狂涌入伦敦股票交易市场.rm

Investors don't buy Russian shares looking for small gains they do it to make a killing. With that potential, comes high risk.
That's why Russian companies like steel giant Severstal are flocking to the London stock exchange. Some Russian companies hope there are sometimes shaky repetitions will be steadied by listing on the LSE. But there are worries that investors could get burnt, because not all LSE rules apply for non-British companies.

"The problem is most people don't understand the different laws apply to these overseas companies. And I think that if there is, a problem when one of these overseas companies is collapsing, there will be a big scandal."

The LSE knows that these Russian shares and other so-called GDRs are not sold to individuals.

"These are products that are designed for the professional market, so for professional investors and institutional investors. And it's no surprise if you see, many of the larger, global merchant markets funds. But also other funds are buying these GDRs."

And buying they are. 6 billion dollars was raised in the LSE by Russian companies in 2005, that could top 20 billion dollars in 2006. The reason: London is cheaper, and less regulated than the US stock markets.

But many Russian IPOs in past 2 years have underperformed. And one planned billion dollar float was pulled last month. That's why Severstal and other recent Russian IPOs have been priced to sell.
"Russian companies have been in the learning curve in this period. So the approach to IPOs has changed the companies are now making more regular stake assumptions in their prospectors. And there are much more aware of the need to follow up with the investors."

Another worry is that so many Russian IPOs are tied to commodity prices: oil gas and steel. Prices that are now fulling. But the LSE says it's now seeing interest across a range of sectors.
"We're seeing the four flavor of the Russian economy: we're seeing retail companies coming to market; we're seeing telecommunications; perhaps, even in the next wave, we may see technology."

In fact, some 50 Russian companies have expressed interest in selling shares in 2007. Even though some analysts warned Russian shares are more for speculators than for investors.

Diana Magnay, CNN, London.