Q: Huatai Securities Co., Ltd. (Huatai Securities) releases an announcement today that its issuance of GDR (Global Depositary Receipt) has been approved by the U.K. Financial Conduct Authority (FCA). Besides, Huatai Securities discloses the prospectus of the GDR issuance. What is the opinion of the Shanghai Stock Exchange (SSE) on the approval of Huatai Securities’ GDR Issuance in the U.K.?
A: Huatai Securities is a listed company on the SSE. After getting the approval document issued by the FCA, if the issuance is completed smoothly, Huatai Securities will become the first A-shares company that lands on the London Stock Exchange (LSE) according to the business rules of Shanghai-London Stock Connect. It means that the westward business of Shanghai-London Stock Connect has made a substantial step. The SSE, where Huatai Securities is listed in the A-share market,holds that the successful issuance of Huatai's GDR in London will help Chinese institutions better integrate into the international capital market and strengthen cooperation between the two financial hubs of London and Shanghai.
The regulatory authorities of the Chinese capital market adhere to a philosophy that we should unremittingly fuel the opening-up of the capital market. The SSE, as the frontier of the reform and opening-up, spares no efforts on every task and follows the deployment of the China Securities Regulatory Commission (CSRC). In an array of system innovation modes related to connectivity, equity cooperation and others, the SSE has continuously strengthened the cooperation with major markets worldwide for win-win results in recent years, and cemented its ability of risk control in the global integration. It is believed that under the guidance and supports by the Financial Stability and Development Committee of the State Council, the People's Bank of China, the CSRC, the China Banking Regulatory Commission (CBRC) and the China Insurance Regulatory Commission (CIRC), the State Administration of Foreign Exchange and other financial regulatory agencies, more A-share listed companies will be able to land in the London capital market. At the same time, the London-listed companies willing to develop together with China will be offered the chance to go public at the SSE in the future.