Shenzhen, London Bourses Ease Cross-Border Flow of Funds Via New Deal
Xu Wei
/SOURCE : Yicai
Shenzhen, London Bourses Ease Cross-Border Flow of Funds Via New Deal

(Yicai Global) Dec. 18 -- The Shenzhen Stock Exchange and London Stock Exchange Group have agreed to form an alliance to facilitate British investors investment in China and vice versa, state-run Xinhua news agency reported.

Safeguarded by rigorous market entry mechanisms, the Shenzhen-London Technology Innovation Investment and Financing Service Alliance signed in Beijing Dec. 16 offers a full suite of services encompassing financing project presentation and roadshows, project appraisals, corporate training, online investments and financial communities and initial public offering consulting.

It features an online + offline service model based on the latest financial technology to facilitate cross-border investment and financing that will allow participants in the Chinese and British capital markets to provide venture capital and financing support to more technology firms and startups in the two countries.

The V-Next platform at the Shenzhen exchange and the Elite program under the London Stock Exchange Group Plc [LON:LSE] will jointly operate the alliance, per the report.

With their respective institutional, market and information resources, the exchanges will increase support for Chinese and British innovative enterprises and microbusinesses via two-way service mechanisms for listed small- and mid-sized companies and investors, thus luring more high-potential businesses, investors, brokerages and public companies with improved capital connection services, noted Wu Lijun, councilor of the Shenzhen Stock Exchange.

The alliance sets a good example of how national regulators from different countries can collaborate to stimulate innovation and will more effectively protect investors, said Andrew Bailey, chief executive of the UK's Financial Conduct Authority.

The parties should share customer resources, information and services through cooperation based on online platforms and facilitate the pooling of cross-border creative capital, connecting investors and tech firms in Shenzhen and London by providing company appraisals, training, online presentations, communication and IPO advisory services, since expanding regulatory and business collaboration between China and the UK will substantially benefit innovative businesses in both countries, opined Fang Xinghai, vice chairman of the China Securities Regulatory Commission. 

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Keywords: UK , Shenzhen Stock Exchange , London Stock Exchange