Long-awaited London-Shanghai Share Listing Project Goes Live

Companies listed in Britain will be able to sell shares in China starting on Monday with the launch of a long-awaited London-Shanghai Stock Connect project, which Britain’s Finance Minister Philip Hammond called a chance to deepen “global connectivity.”

 

Under the Connect scheme, Shanghai-listed companies can raise new funds via London’s stock market while British companies can broaden their investor base by selling existing shares in Shanghai.

 

The project was intended to begin late last year with the December listing of Chinese brokerage Huatai, backed by Alibaba Group Holding Ltd. But the listing was delayed at the last minute.

 

Huatai Securities Co. Ltd then effectively launched Connect earlier this month with the announcement of plans to raise money on the London Stock Exchange (LSE).

 

Huatai, one of China’s largest brokerages, is expected to make its London market debut on June 17, becoming the first company to trade via the London-Shanghai Stock Connect project.

 

From Monday, London investors will have the opportunity to trade Global Depositary Receipts in Huatai.

 

Source: Reuters

Video Source: Shanghai Live