The analysis of the requirement for Stock Connect Scheme between Shanghai and London Stock Exchanges
The analysis of the requirement for Stock Connect...
China Capital Markets Update - Issue 1
The China Securities Regulatory Commission (CSRC) announced new regulations that will further expand the two-way liberalization of capital markets and open up China’s domestic market globally. The CSRC recently issued the Provisions on the Supervision and Administration of Depositary Receipts under the Stock Connect Scheme between Shanghai Stock Exchange and London Stock Exchange (for trial implementation) (《关于上海证券交易所与伦敦证券交易所互联互通存托凭证业务的监管规定（试行）》, hereinafter referred to as "Regulatory Provisions") on 12 October 2018. The Regulatory Provisions are effective immediately. The Shanghai Stock Exchange (SSE) has issued complementary business rules (hereinafter referred to as “1+3 Rules”) to regulate the issue, cross-border conversion and information disclosure in the depository receipt business carried under the Stock Connect mechanism between the SSE and the London Stock Exchange (LSE) (hereinafter referred to as “Shanghai-London Stock Connect”). These measures aim to protect the legitimate rights and interests of investors, maintain the order of securities markets and ensure the seamless implementation of Shanghai-London Stock Connect depository receipt business.
In this issue, we will summarise the relevant requirements and structure of Shanghai-London Stock Connect.