China: Suspended London-Shanghai exchange partnership

China: Suspended London-Shanghai exchange partnership

China: Suspended London-Shanghai Stock Exchange partnership

  • China suspended a planned cross-border listings partnership between the Shanghai and London Stock Exchanges
  • The Shanghai-London Connect Scheme, also allows companies listed on LSE to trade depository receipts on its Shanghai counterpart
  • The project has also halted over the UK’s stance on the ongoing Hong Kong protests
  • The scheme launched in 2019, originally devised as a way to improve the UK’s relationship with China
  • State-owned brokerage Huatai Securities was the first Chinese firm to use the scheme, raising $1.45 billion
  • Also no UK-listed company has used the scheme to issue depository receipts in Shanghai