London Stock Exchange Group and Haitong Securities sign Agreement

  • LSEG and Haitong Securities agree to wide ranging collaboration across trading, ETFs and IPOs
  • Further significant boost to growing ties between UK and China
  • Haitong Securities Chairman, Wang Kaiguo opens London trading

London Stock Exchange Group (LSEG) today signed a memorandum of understanding (MoU) with Haitong Securities. The agreement was signed by London Stock Exchange plc CEO, Alexander Justham and Haitong Securities Chairman, Wang Kaiguo.

Following the MoU, the two parties will work closely together to:

  • Collaborate around RMB ETFs tracking Chinese securities
  • Develop RMB fixed income product innovation
  • Facilitate Chinese investors to access the London Stock Exchange Group Capital Markets
  • Help promote London IPO opportunities to Chinese corporates
  • Explore opportunities to co-operate on new index and derivatives products

The signing ceremony, held at LSEG’s Paternoster Square headquarters followed a special Market Open Ceremony in which Haitong Securities Chairman, Wang Kaiguo formally opened London market trading. The agreement also comes a week before the Group hosts a major two day Capital Markets conference in Hong Kong, demonstrating its burgeoning relationship with the Chinese market.

Alexander Justham, CEO, London Stock Exchange plc said:

“London is the world’s most international financial market and a natural partner to China as part of its ongoing global development. London Stock Exchange Group looks forward to working with Haitong Securities’ as it looks to develop the off-shore RMB market in London, as well as facilitating closer ties between London and Chinese companies.  Our agreement today will accelerate progress towards significant and exciting milestones in this important new chapter in global finance.”

Wang Kaiguo, Chairman of Haitong Securities Co. Limited said:

“As China’s Capital Markets gradually open up, an increasing number of Chinese enterprises are seeking overseas development. These new market dynamics have generated plenty of cross-border financing and investment opportunities.  Haitong Securities and London Stock Exchange Group are both mature financial services providers, and each has a unique but complementary advantage in the global financial services industry. This memorandum of understanding (MoU) with London Stock Exchange Group formalises co-operation between both parties and is aimed at seizing the opportunities posed by these new market dynamics to better serve clients’ needs.”

Haitong Securities is one of the leading securities firms in China. Its business areas include brokerage, investment banking, asset management, funds, margin trading & short selling, futures and Private Equity investments. In December 2014, Haitong signed a sale and purchase agreement to acquire BESI (subject to regulatory approvals), significantly improving its international capabilities, particularly in Europe and the Americas.

LSEG has a strong track record of supporting Chinese equity and debt issuance on its markets. 57 Chinese companies are quoted in London - 8 on the Main Market and 49 on AIM. In addition, there are 32 so-called dim sum bonds on London Stock Exchange’s markets, with an aggregate value of RMB 24 billion.

 

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For further information:

 

  

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Tom Gilbert

+44 (0)20 7797 1222

newsroom@lseg.com

 

Notes to editors:

About London Stock Exchange Group:


London Stock Exchange Group (LSE.L) is a diversified international market infrastructure and capital markets business sitting at the heart of the world's financial community. The Group can trace its history back to 1698.

The Group operates a broad range of international equity, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS, Europe's leading fixed income market; and Turquoise, a pan-European equities MTF. It is also home to one of the world’s leading growth markets for SMEs, AIM. Through its platforms, the Group offers international business and investors unrivalled access to Europe's capital markets.

Post trade and risk management services are a significant part of the Group’s business operations. In addition to majority ownership of multi-asset global CCP operator, LCH.Clearnet Group, LSEG operates CC&G, the Italian clearing house; Monte Titoli, the T2S-ready European settlement business; and globeSettle, the Group’s newly established CSD based in Luxembourg.

The Group is a global leader in indexing and analytic solutions. FTSE Russell offer thousands of indexes that measure and benchmark markets around the world. The Group also provides customers with an extensive range of real time and reference data products, including SEDOL, UnaVista, Proquote and RNS.

Following the acquisition of Russell Investments, LSEG conducted a comprehensive review of the investment management business to analyse its strategic fit with the Group. This was concluded in February 2015, and LSEG is now exploring a sale of the business in its entirety.

London Stock Exchange Group is a leading developer of high performance trading platforms and capital markets software for customers around the world. In addition to the Group’s own markets, over 35 other organisations and exchanges use the Group’s MillenniumIT trading, surveillance and post trade technology.

Headquartered in London, with significant operations in North America, Italy, France and Sri Lanka, the Group employs approximately 4,700 people.

Further information on London Stock Exchange Group can be found at www.lseg.com.