The Shanghai-London Stock Connect (the Stock Connect) was officially launched on 17th June in London. The co-operation means that listed companies are allowed to list depositary receipts on the other exchange.
The China Securities Regulatory Commission (CSRC) and the UK Financial Conduct Authority (FCA) have agreed to closely collaborate on cross-border supervision and enforcement. The first Global Depositary Receipt (GDR) under the Stock Connect, issued by SSE-listed Huatai Securities Co., Ltd., has also been listed for trading on the LSE on the same day.
- By expanding channels for bilateral financing and investments, the Shanghai-London Stock Connect has far-reaching significance in promoting capital markets development in both countries and supporting Shanghai’s endeavors to build an international financial center, the Shanghai Stock Exchanges said in the press release.
- Moving forward, the CSRC is committed to pushing ahead with the reform and opening-up of China’s capital markets in accordance with the directives of the CPC Central Committee and the State Council. The CSRC will work closely with relevant regulatory authorities of the UK to safeguard smooth operations of the Stock Connect and reinforce investor protection in the interests of sound and steady development of the capital markets, the company says.