Shanghai-London stock exchange connection goes live
August 13, 2019
Last month the long awaited Shanghai-London Stock Exchange connection went live, nearly 4 years after it was first considered.
According to the London Stock Exchange the project represents a number of firsts:
- The first time any foreign companies will be able to list in mainland China and the first time SSE listed companies will be able to raise capital abroad through instruments fungible with their domestic shares.
- The first time Chinese investors will be able to access international stocks from within China without being subject to domestic capital controls.
- The first time international investors will be able to access China A-shares from outside Greater China and through international trading and settlement practices.
Shanghai-London Stock Connect has been developed jointly by Shanghai Stock Exchange and London Stock Exchange Group, with the support of both the UK and Chinese governments and in collaboration with regulatory authorities.
By adopting new regulations, while leveraging existing infrastructure, we have introduced a programme that will support the development over time of a vibrant financial ecosystem connecting China, the UK and the wider global economy. We invite issuers, banks, brokers, asset managers, asset owners and professional services firms from both countries to learn more and participate in Stock Connect.
China has already expanded its reach to foreign countries with previous exchange connections, such as the Shanghai Hong Kong Connect and the Shenzhen Hong Kong Connect. This new London version is the first of its kind outside Asia and will show China is moving towards opening up the market to foreign investors.