Stock trading link

Why the London-Shanghai Stock Connect may never take off

Besides Brexit concerns, limited investor demand and the small supply of companies are among the major factors that weigh on the plan to connect London and Shanghai.

The London-Shanghai Stock Connect is touted as one of China’s biggest economic reforms to open its domestic stock market to international investors. For London, the scheme presents a golden opportunity to bring local companies closer to what is set to be the world’s largest economy within the next few years.

But while both the Chinese and the UK authorities have high hopes that the link will stimulate cross-border share trading, it could struggle to find success, faced as it is with multiple challenges.

It has been more than a year in the making, but the London-Shanghai Stock Connect is yet to be launched officially. Unlike previous stock...

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