Li Ka-shing's high-street health and beauty chain is very likely to target London and Hong Kong for its $5bn-plus share sale, but only if it can be sure of inclusion in both the Hang Seng and FTSE 100, according to people close to the company.

AS Watson, which has thousands of stores across Europe and China, will make a decision in the next few days, but is keen to go for a dual listing in order to ensure it reaches a wide number of captive investors, the people said, writes the FT's Paul Davies in Hong Kong.

The last listing done in Hong Kong by the conglomerate controlled by Mr Li, Asia's richest man, struggled badly to entice investors and priced at a lower than expected level. This was partly down to local investors having become wary of buying something that Mr Li wants to sell, due to his reputation as an asset trader, according to bankers.