Market experts eye London-Shanghai stock link benefits

The Shanghai-London scheme expected to launch this year could help local Chinese investors turn their portfolios into more global ones with less regulatory and forex risk.

It has been a long time coming and pretty soon it could be here a stock trading scheme linking Shanghai with London, some 9,000 kilometres away.

However, unlike its more established Shanghai-Hong Kong namesake, the Shanghai-London Stock Connect programme will only allow investors in each market to buy stocks indirectly in the form of depository receipts, a consultation paper shows.

Expected before the end of the year, Shanghai-London Stock Connect will enable investors in either country to invest in companies listed in the other, providing these companies have a secondary depositary receipt listing in place.

With Shanghai-Hong Kong Connect and its Hong...

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