The Shanghai-London Stock Connect (the Stock Connect) was officially launched on 17th June, 2019. Vice Premier of the State Council of China Hu Chunhua and British Chancellor of the Exchequer Philip Hammond attended the launching ceremony held at the London Stock Exchange during the 10th China-UK Economic and Financial Dialogue co-chaired by the two leaders.
The China Securities Regulatory Commission (CSRC) and the UK Financial Conduct Authority (FCA) released the Joint Announcement and approved, in principle, the establishment of stock connect regime between Shanghai Stock Exchange (SSE) and London Stock Exchange (LSE), allowing listed companies on each exchange to list DRs on the other exchange. The two regulatory authorities have agreed to closely collaborate on cross-border supervision and enforcement under the Stock Connect by entering into the Memorandum of Understanding concerning Supervisory and Enforcement Cooperation under Shanghai-London Stock Connect. 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.
The launch of the Shanghai-London Stock Connect, one of the important outcomes of President Xi Jinping’s state visit to the UK in 2015, marks a milestone in the reform and opening-up of China’s capital markets and an integral part of financial cooperation between the two countries. 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.
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.