Economics
LSE Reveals London-Shanghai Stock Link Details
- System will be a two-way program of depositary receipts
- London trading will be in dollars, presentation shows
Photographer: Chris Ratcliffe/Bloomberg
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London Stock Exchange Group Plc has laid out the blueprint for its long-awaited trading link with Shanghai, an initiative that will further China’s efforts to integrate with the international financial system.
The London-Shanghai Stock Connect will allow companies from China to sell global depository receipts in the U.K. and enable London-traded firms to list similar securities in Shanghai, according to an LSE presentation seen by Bloomberg News. Starting later this year, the securities issued by Chinese companies will appear on what LSE calls the Shanghai Board. A spokesman for LSE declined to comment.