China's Top Financial Regulators Step Up Their Efforts for Creation of London-Shanghai Stock Connect
Xu Wei
/SOURCE : Yicai
China's Top Financial Regulators Step Up Their Efforts for Creation of London-Shanghai Stock Connect

(Yicai Global) Dec. 5 -- With the acceleration and progress of 'interconnection and interworking' mechanisms and the successive openings of the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect, investors and regulators turn their eyes to another project: the London-Shanghai Stock Connect.

There have been new statements from the China Securities Regulatory Commission (CSRC) and the China Securities Depository and Clearing Corporation Limited (CSDC) in support of establishing a London-Shanghai Stock Connect.

The idea for the creation of a Shanghai-London Stock Connect shall be steadily promoted, said Li Chao, vice chairman of the CSRC on Nov. 16. Zhang Shenfeng, assistant chairman of the CSRC, reiterated at a special investors forum held on Nov. 22 that they will promote the idea of Shanghai-London Stock Connect.

The Shanghai-Hong Kong Stock Connection will be optimized and the idea for the Shanghai-London Stock Connect will be continuously promoted in future, said Zhang Bin, chairman of Hong Kong Office of the Shanghai Stock Exchange.

The CSDC will fully cooperate with the CSRC for the progress of the Shanghai-London Stock Connect project, vowed Zhou Ming, chairman of the CSDC, at a forum held on Dec. 2 for the first anniversary of opening of the Shenzhen-Hong Kong Stock Connect.

The Shanghai-London Stock Connect project is the embodiment of acceleration in internationalization of China's capital market and China's willingness to participate in the international financial market, said the forum participants. If the Shanghai-London Stock Connect is successfully established, both China and the UK will benefit from it.

Through such a connect, China's capital market would attract more long-term international investors, which helps improve the composition of investors and consolidate the idea of rational value investment in the market. It would also help better meet domestic investors' needs for diversified investment worldwide, the market insiders pointed out Once the Shanghai-London Stock Connect is set up, more opportunities for the linkage of the two markets will be available, they said.

Possible opening of the Shanghai-London Stock Connect would create new sources of capital for the domestic capital market, help to optimize the investors' ideas and would pave the way for the investors to pay more attention to the value of listed companies, which is advantageous to the long-term and healthy development of the A-share market, said Zheng Hong, chief investment advisor at Datong Securities.

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Keywords: UK , London Stock Exchange , Shanghai , Hong Kong , Stock Connect