UK companies may sell shares in China from today
This is the first time that any foreign company will be able to list in mainland China.
Investors will be able to trade across London and Chinese time zones, allowing issuers from both markets to raise capital in the other market.
It will mean UK listed companies can be traded by more investors, providing investors with greater choice.
There are almost 1500 companies listed in Shanghai, over 260 of which are potentially eligible to take part in Stock Connect and list in London.
It is also estimated that China will reach over $17 trillion in assets under management (AUM) by 2030, having had $2.8 trillion AUM in 2016.
The launch of Stock Connect is the centrepiece of today’s UK-China Economic and Financial Dialogue (EFD) which sees the Chancellor host Vice Premier Hu Chunhua and a Chinese delegation in London to discuss multilateral and bilateral economic issues, financial services cooperation, and trade and investment.
London investors will have the opportunity to trade Global Depositary Receipts (GDRs) for Huatai, the technology-enabled securities group in China. ■