In the News: Shanghai-London Stock Connect; New Rules on Shanghai’s STAR Market; and Support for Smaller Brokerages
June 24, 2019 | BY
Marilyn RomeroThe Shanghai and London stock exchanges’ connect program has finally launched; new rules have been introduced to limit speculative trading of stocks on China’s new technology and innovation board; and the CSRC has urged major brokerages in the China to help smaller operations in the country's non-banking financial sector.
London Stock Exchange
Shanghai-London Stock Connect program is launched
The Shanghai-London Stock Connect program officially launched this week after nearly four years of preparation. Select companies that are listed on either the Shanghai Stock Exchange or the London Stock Exchange are now allowed to issue depository receipts on the other exchange. The scheme’s development has been supported by the U.K. and Chinese governments to encourage cross-border investment between the countries, and provide investors and companies in the countries with mutual access to each other’s capital markets. A quota system for maximum investment amounts has been introduced for the early stages of the program.
More from CLP: Shanghai-London Stock Connect Goes Live With Huatai Securities Debut; China Securities Regulatory Commission, Provisions for the Regulation of the Depository Receipt Business in the Stock Connect Between the Shanghai Stock Exchange and the London Stock Exchange (Trial Implementation) (Draft for Comments)
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now