Shanghai-London Stock Connect names first issuer 18 June 2019Shanghai Reporter: Rebecca Delaney
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Huatai Securities has been named as the first user of Shanghai-London Stock Connect.
The listing was marked by the London Stock Exchange Group (LSEG) receiving chancellor of the exchequer Philip Hammond, vice premier of the State Council of the People’s Republic of China Hu Chunhua, and representatives from Huatai Securities.
Huatai Securities successfully raised $1.54 billion by selling global depository receipts (GDRs) to international investors, which will be used to supplement its international and capital position.
GDR trading is accessible on the LSEG’s International Order Book, and highlights the first time international investors have used international trading and settlement to gain access to China A-Shares outside of Greater China.
Zhou Yi, chairman and president of Huatai Securities, said: “Shanghai-London Stock Connect is the first of its kind to directly link the Chinese and European markets and a strategic component of China’s capital markets opening up.”
“The offering will improve our core competitiveness by supporting the growth of our international business, further expanding our overseas footprint, and strengthening our capital position.”
He added: “We are pleased to be the first issuer to tap this new market of enormous potential and unprecedented opportunity.”
Don Robert, chairman of the LSEG, commented: “Shanghai-London Stock Connect allows established Chinese issuers to raise capital from London’s global liquidity pool and global investors to access China A-Share instruments from outside Greater China.”
“We appreciate the support of both the Chinese and British authorities and our partnership with Shanghai Stock Exchange, which have been instrumental in bringing this ambitious project to fruition today.”
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