LSE studying stock-connect scheme with Shanghai: state media

[SHANGHAI] The London Stock Exchange (LSE) is researching the possibility of creating a stock trading link with the Shanghai Stock Exchange similar to the one between Hong Kong and Shanghai, Chinese state media reported on Friday. "We are working on it and trying to understand what might be involved," Nicolas Bertrand, head of equity and derivative markets at the LSE, was quoted by the China Daily state newspaper as saying at a briefing in Beijing on Thursday.

He said that it was in talks with regulators, clients and asset firms to understand if such a stock-connect would meet regulatory requirements, adding that such an arrangement would add complexity to the LSE's operations.

China, which is striving to liberalise its capital markets, unveiled the Hong Kong-Shanghai stock connect scheme in April 2014 and launched it in November of that year. A complementary Hong Kong-Shenzhen link is expected to be launched soon.

Mr Bertrand also said that the LSE was discussing the set up of a mechanism for yuan-demominated global depositary receipts (GDRs), which will allow China's mainland-listed shares to trade via GDRs on the LSE, according to the China Securities News newspaper.

REUTERS