The London Stock Exchange intends to compete directly with its largest international rival for lucrative Chinese listings by filing an application with the country's authorities by the end of the year to open a mainland office, following a similar move from NYSE Euronext.

Yesterday, NYSE Euronext became the first foreign exchange to receive clearance to open an office in China as competition heats up for the country's stock listings while regulatory barriers begin to crumble amid increased capital market cooperation between the world's two largest economies.