London next stop in stock connect planBusiness | Gloria Song 13 Jun 2016
China Securities Regulatory Commission said yesterday that China will strengthen cooperation with Britain and consider the feasibility of a Shanghai- London stock connect.
Its director of international affairs, Qi Bin, was speaking at the Shanghai Lujiazui Forum, which had global economic growth and financial reforms as themes and Britain as the guest of honor.
Qi said international institutional investors can improve the structure of the market. London, with a big advantage in market regulation and financial development, can provide support for Chinese investments overseas.
Gao Yingxin, vice chairman of Bank of China, said financial cooperation between Britain and China was in a golden age marked by several milestones.
Britain is the first foreign country to issue yuan sovereign bonds and adopt the yuan as a reserve currency, with the People's Bank of China issuing a five billion yuan one-year bill in London during President Xi Jinping's visit last year.
HSBC and Bank of China underwrote the first yuan sovereign debt overseas, which listed on the London Stock Exchange last Wednesday, for the Ministry of Finance.
Gao said London has become the second-largest trading hub for the yuan, with daily volume of US$60 billion, after Hong Kong and plays an important role in yuan internationalization.
Mark Boleat, policy and resources chairman of City of London Corporation, said the Shanghai-London stock connect is within expectations and the mechanism should be much more complicated that the Shanghai-Hong Kong connect due to the time-zone difference.