Money News

China kicks off Shanghai-London Stock Connect with initial quota

The London Stock Exchange Group offices are seen in the City of London, Britain, December 29, 2017. REUTERS/Toby Melville

SHANGHAI (Reuters) - China’s securities regulator set initial quotas for the Shanghai-London Stock Connect scheme that officially kicked off trading on Monday, in its latest move to open up its capital markets.

Under the west-bound leg of the scheme, Shanghai-listed companies can raise new funds via London’s stock market while the east-bound leg lets British companies broaden their investor base by selling existing shares in Shanghai.

The China Securities Regulatory Commission (CSRC) said in a joint statement with the British financial regulator that the initial quota for the east-bound leg of the scheme was 250 billion yuan ($36.11 billion), while the quota for the west-bound leg of the programme was 300 billion yuan.

Huatai Securities Co Ltd, one of China’s largest brokerages, makes its London market debut on June 17, becoming the first company to trade via the London-Shanghai Stock Connect project.

($1 = 6.9242 Chinese yuan)

Reporting by Samuel Shen and John Ruwitch; Editing by Jacqueline Wong