The Shanghai-London stock exchange begins

21/06/2019

 

The long-awaited Shanghai-London Stock Connect trading program was launched in recent days

 

The Shanghai-London Stock Connect trading program was opened on Monday. In this way, the brokerage company Huatai Securities became the first Chinese company to list in Britain.

The system underlying this mechanism is the equity link. In summary, companies listed in Shanghai can register on the London Stock Exchange through the Global Depositary Receipts (GDR) issue, while UK companies can issue Chinese deposit receipts (CDRs) on the Shanghai Stock Exchange.

 

The trading program should make Shanghai an international financial center

 

The launch of the mechanism, as stated by the China Securities Regulatory Commission (CSRC), marks a crucial step in opening the capital market in China and an important part of China-Britain pragmatic cooperation in the financial sector.

The mechanism will have to be able to expand the channels for cross-border investments and fundraising, while promoting the development of the capital markets of both countries. Finally, according to CSRC, the trading program should encourage the construction of Shanghai in an international financial center.

 

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