LSE consults on extension of markets eligible for Shanghai-London Stock Connect
Following the launch of Shanghai-London Stock Connect in June 2019, London Stock Exchange now proposes to extend the markets eligible for Shanghai-London Stock Connect. In addition to Shanghai Stock Exchange Main Board issuers, qualifying issuers admitted to the Science and Technology Board of the Shanghai Stock Exchange will also be able to apply for admission to trading via Shanghai-London Stock Connect.
Following collaboration between the Exchange and the Shenzhen Stock Exchange, qualifying issuers admitted to either Shenzhen Stock Exchange’s Main Board Market or its ChiNext Market will now also be able to apply for admission to trading via Shenzhen-London Stock Connect.
In addition, the Exchange proposes to remove the minimum market capitalisation criteria given that Shanghai-London Stock Connect and Shenzhen-London Stock Connect issuers are required to admit the global depositary receipts to the Main Market, which does not have market capitalisation restrictions based on the country of jurisdiction.
In order to reflect the above Stock Connect proposals, if taken forward, the changes will mostly affect the definitions and Schedule 7 of the Standards, which relates to Stock Connect.
The Exchange welcomes comments on the above proposals and engagement from market participants to help shape the expansion of Stock Connect. Comments are invited by close of business on 1 August 2022.
The Exchange expects to confirm the final rules at or around the end of September 2022.