United Kingdom shares list in China in first for foreign firms

United Kingdom shares list in China in first for foreign firms

Companies listed in Britain will be able to sell shares in China on Monday with the launch of a long-awaited London-Shanghai Stock Connect project that finance minister Philip Hammond called a chance to deepen "global connectivity".

The two regulators joint announcement sets out high-level details of the scheme.The Shanghai-London Stock Connect will enable Shanghai-listed Chinese companies to apply to be admitted to trading on a newly formed Shanghai Segment ofLondon Stock Exchanges Main Market, while companies with a premium listing in the United Kingdom will be able to apply for admission to the Main Board of the SSE.

For Chinese investors, to whom the structure is a new concept, they will be able to gain exposure to worldwide securities via an exchange located in their own country and currency.

For Chinese companies to list on the LSE, it needs to meet the criteria of the minimum market capitalization of at least RMB 20 bln.

For both the United Kingdom and China, the securities traded will be in the form of depositary receipts, a common way of facilitating overseas companies access to institutional investors. It will be the first time foreign companies are able to list in mainland China, the United Kingdom government said in a statement. It is estimated that 260 companies listed in Shanghai are eligible.

Chinese brokerage Huatai was the first to debut on the London Stock Exchange on Monday. "We both believe in the positive contribution regulators can make in worldwide capital markets, and the new co-operation we're announcing today will be an important contributor to the success of the scheme". China is expected to have more than US$ 17 trillion in assets under management (AUM) by 2030, having had $2.8 trillion AUM in 2016.

In addition, for the time being at least, there remains a discrepancy between trading limits in the countries' stock exchanges: Shanghai has a 10 percent daily trading limit, whereas London has no limit.



Related Posts

Kazuki Nakajima aids Toyota's 1-2 finish at Le Mans
While Alonso is bypassing Le Mans next year to concentrate on other projects, probably the Dakar Rally, he said he would return. We thought there was a front right puncture; now there was one on the rear.

Ruth Bader Ginsburg MTV award
Supreme Court Justice Ruth Bader Ginsburg , the diminutive, 86-year-old liberal judge, was voted best real-life hero, cementing her status as an unexpected pop culture icon, especially among women.

Google Calendar is down. Today is canceled
As of 10:30 a.m. (ET), almost 4,400 reports had been submitted from users affected by the outage. Both free Google accounts and paid G Suite accounts are affected.

Veena Malik accuses Sania Mirza of bad parenting in ugly Twitter spat
However, before Veena could reply to this, the said tweet was deleted by Sania, leaving no trace. Also as far as I know Archie s is all about junk food which isn t good for athletes/Boys.

Over 100 children die of Encephalitis in India
It is also reported that, apart from Muzaffarpur, some other districts of the state have also been affected. A compensation of ₹4 lakh to families of the deceased children has also been announced.

China 'thoroughly, seriously' investigating boat collision - ambassador
Geng said it was irresponsible for the Philippines to "politicise the incident without verification". Stephen Penetrante, spokesman for the military unit in charge of the disputed waters.

David Ortiz's condition upgraded to 'good,' remains in intensive care
On Sunday, Ortiz's children and wife posted heartfelt Father's Day messages on Instagram to the Boston Red Sox legend. The 10-time MLB All-Star was in serious condition and underwent surgery.

$1B worth of cocaine seized at Philadelphia port
At least two crew members of the Gayane have been charged with trafficking, according to a complaint filed Tuesday by the U.S. The Inquirer also reports that the bust happened after a member the Coast Guard found traces of cocaine on Durasevic's arms.

Adele partied with the Spice Girls after their final reunion show
Well, according to Mel B (aka Scary Spice). "You know me by now", the 44-year-old said. "I'm sorry for leaving". Horner stated that she was "just being a brat" and that it was "so good to be back with the girls that I love".

Strawberry Moon 2019: Best occasions to watch and an extraordinary review reward
The sixth full moon of the year is nearing the summer solstice and shining through the atmosphere in a brilliant strawberry hue. A full " Strawberry Moon " rises behind St Michael's Mount in Marazion near Penzance on June 28, 2018 in Cornwall, England.

© 2015 ExpressNewsline. All Rights reserved.