Reed Smith Client Alerts

London Stock Exchange Group Plc (LSE) has announced that shares can now be admitted to the Shanghai-London Stock Connect (Stock Connect). Stock Connect brings together one of the world’s largest domestic capital markets (Shanghai) with the world’s leading international market (London) and opens up the opportunity for global investors to trade shares in Chinese companies and for Chinese investors to buy shares in London-listed companies.

Authors: Delphine Currie Denise Jong Johnathan P. Webber

The LSE has described the new market as a “milestone” in bringing the capital markets of London and Shanghai together. Stock Connect allows eligible companies listed in each market to issue, on the other exchange, a depositary receipt (DR) that can be traded under local rules in the local time zone. It also represents the first time the Shanghai Stock Exchange will be open to foreign issuers and the first time that a DR will be capable of being converted into an ‘A’ share which is fully fungible.

To read the LSEs announcement, please visit the London Stock Exchange.