(Yicai Global) June 13 -- The Shanghai-London Connect trading mechanism is ready to kick-off, according to the head of the London bourse.
The regulatory framework, including cross-border trade rules, is completed and one potential global depositary receipt issuer has already lined up, David Schwimmer, the chief executive of the London Stock Exchange Group, told Yicai Global at Lujiazui Forum in Shanghai today.
The program means that those firms listed in Shanghai or London may issue GDRs on the other city's bourse. Huatai Securities, a Shanghai-listed brokerage, got a permit earlier this month from a Chinese stock regulator to do so, with an aim to raise between USD1.7 billion and USD2 billion by offering as many as 82.5 million GDRs.
The link between the two bourses is beneficial for share issuers on both sides, and an important step for the Chinese market to further open up to the world, Schwimmer said. The scheme will enable international investors to benefit from the growth of the Chinese market and British listed firms to secure better financing from Chinese investors, he added.
Editor: Emmi Laine