Stock Connect allows eligible companies listed in each market to issue, on the other exchange, a depository receipt (DR) that can be traded under local rules in the local time zone.

All participating companies are required to meet the listing and ongoing obligations specific to each market. Chinese companies listing in London are admitted to the Official List regulated by the Financial Conduct Authority and London Stock Exchange listed companies seeking to list in Shanghai are approved by China Securities Regulatory Commission.

Investors can buy and sell depositary receipts using existing trading channels and practices. Cross-border trading is executed by Stock Connect designated brokers from both markets, who are able to access the underlying securities and meet the demand for depositary receipts.