Shanghai-London Stock Connect welcomes its first issuer: Huatai Securities
- Huatai Securities raises US$1.54 billion; first issuer to list GDRs in London on the Shanghai Segment of London Stock Exchange
- Shanghai-London Stock Connect is first ever fungible cross-listing mechanism enabling international investors to access China A-shares from outside Greater China
- London-listed corporates are now able to issue CDRs in Shanghai & Shanghai-listed corporates can issue GDRs in London
- Underlines LSEG’s status as partner of choice for Chinese issuers accessing international capital
London Stock Exchange Group (LSEG) today welcomes Huatai Securities, the technology-enabled securities group in China, as the first issuer using Shanghai-London Stock Connect. Huatai Securities has been admitted to trading on the Shanghai Segment of the Main Market of London Stock Exchange.
LSEG welcomed Philip Hammond MP, Chancellor of the Exchequer, and Hu Chunhua, Vice Premier of the State Council of the People's Republic of China, along with representatives from Huatai Securities to open the London market to celebrate the listing and to mark the first day of the UK-China Economic and Financial Dialogue.
Huatai Securities raised US$1.54 billion through the sale of global depository receipts (GDRs) to international investors. The proceeds will be used to support the growth of its international business and strengthen its capital position. This is the first time that international investors have been granted access to China A-Shares on an exchange outside Greater China using international trading and settlement practices. Trading of GDRs is available on London Stock Exchange’s International Order Book. London Stock Exchange is home to over 2000 issuers from more than 100 countries.
Zhou Yi, Chairman & President, Huatai Securities:
"Shanghai-London Stock Connect is the first of its kind to directly link the Chinese and European markets and a strategic component of China's capital markets opening up. The programme offers us access to one of the deepest and most influential capital markets in the world and provides fungibility between the GDRs and the A Shares. The offering will improve our core competitiveness by supporting the growth of our international business, further expanding our overseas footprint, and strengthening our capital position. We are pleased to be the first issuer to tap this new market of enormous potential and unprecedented opportunity."
Don Robert, Chairman, LSEG:
“We are deeply honoured to welcome Vice Premier Hu Chunhua and Chancellor of the Exchequer Philip Hammond to open the London Stock Exchange this morning to mark the launch of Shanghai-London Stock Connect. We congratulate Huatai Securities, the first issuer to start trading through Shanghai-London Stock Connect. Shanghai-London Stock Connect brings together two of the world’s largest capital markets, allowing established Chinese issuers to raise capital from London’s global liquidity pool and global investors to access China A-share instruments from outside Greater China. Established London-listed issuers will now also benefit from access to China’s deep capital markets.
“We appreciate the support of both the Chinese and British authorities and our partnership with Shanghai Stock Exchange, which have been instrumental in bringing this ambitious project to fruition today. All parties see the long-term benefits for companies, investors and the global economy in establishing a trading link between our two markets.”
To find out more about Shanghai-London Stock Connect, visit: www.lseg.com/stockconnect
Full details of the relevant rules can be found at: https://www.lseg.com/markets-products-and-services/our-markets/shanghai-london-stock-connect/rules-library
Notes to editors:
Shanghai-London Stock Connect brings together two of the world’s largest capital markets. Key features include:
- First time foreign companies can list in mainland China
- First time SSE listed companies can raise capital abroad through instruments fungible with their domestic shares (two liquidity pools, one price)
- The only connection between international and Chinese capital markets enabling joint price formation
- First time international investors can access China A-Shares instruments outside China using international trading, clearing and settlement practices
- Designated brokers permitted to operate in both markets delivering fungibility and creating liquidity
- Involves eligible blue-chip issuers in both capital markets
For further information:
Lucie Holloway / Nandeep Roopray
+44 (0)20 7797 1222