Hu Chunhua, Vice Premier of China’s State Council, and Phillip Hammond, UK’s Chancellor of the Exchequer, who jointly chaired the 10th China-UK Economic and Financial Dialogue, attended the opening ceremony of the Shanghai-London Stock Connect at the London Stock Exchange (LSE) on June 17.
The China Securities Regulatory Commission (CSRC) and the U.K. Financial Conduct Authority (FCA) released the “Joint Communique” for the Shanghai-London Stock Connect, which approved in principle that the Shanghai Stock Exchange (SSE) and the LSE may implement the Shanghai-London Stock Connect. The first Global Depository Receipts (GDR) listed under the Shanghai-London Stock Connect by Huatai Securities Co., Ltd. (a listed company on the SSE) was listed and traded on the LSE on the same day.
Launching the Shanghai-London Stock Connect, an important measure to implement the results of President Xi Jinping’s visit to the U.K. in 2015, is a key exploration in the reform and opening-up of China’s capital market, and also an essential part of the pragmatic cooperation in the financial sector between China and the U.K. Against the backdrop of revived unilateralism in the world, the launch of the Shanghai-London Stock Connect has shown China’s steadfast determination of promoting reform and development through opening-up, the continuous efforts on building an independent and open capital market, and the firm belief in advancing the economic and financial cooperation as well as win-win development of all countries.
Building a highly internationalized capital market is a key mission of the SSE, and it strives to build itself into a world-class exchange. The Shanghai-London Stock Connect is made possible thanks to the careful guidance of the CSRC and the great support of the Shanghai Government and all the relevant departments over the past 4 years. The Shanghai-London Stock Connect will be a convenient channel for he issuers and investors of both sides to invest in and finance from the other market, and it marks another innovation in the connectivity mechanism between domestic and overseas exchanges after the launching of Shanghai-Hong Kong Stock Connect in 2014. The SSE expects that the westbound business of the Shanghai-London Stock Connect will help more domestically-listed companies in expanding international business and enhancing their international profile. Meanwhile, the potential issuers and market institutions of the eastbound business are actively studying relevant rules and looking for market opportunities. The SSE is looking forward to the two-way opening of the Shanghai-London Stock Connect.