Stock Market – China-UK stock market a ‘flop’ as companies shun initiative
Flagship scheme to forge nearer hyperlinks between Britain and China’s stock markets dubbed a ‘flop’ after UK companies shun the initiative
A flagship scheme to forge nearer hyperlinks between Britain and China’s stock markets has been dubbed a ‘flop’ after UK companies shunned the initiative.
The London-Shanghai Join scheme was 4 years within the making and was launched in June 2019 to encourage giant Chinese language and British corporations to boost capital by listings on one another’s stock markets.
On its launch, then Chancellor Philip Hammond hailed the link-up as ‘a powerful vote of confidence within the UK market’, including: ‘Stock Join is a ground-breaking initiative, which is able to deepen our world connectivity as we glance outwards to new alternatives in Asia.’
Fractured: Simply 4 Chinese language corporations have used the scheme, and there have been no British members on the Shanghai Stock Change
The thought was to allow traders to commerce throughout London and China’s time zones, permitting issuers from each markets to increase capital within the different. However simply 4 Chinese language corporations have used the scheme, and there have been no British members on the Shanghai Stock Change regardless of a wave of Covid emergency fundraisers this yr.
Since its launch political tensions between the UK and China have risen.
One Metropolis supply stated: ‘This was purported to be the centrepiece of a string of bilateral agreements, as a substitute it has been a flop.’
Andrew Monk, head of UK dealer VSA Capital, which has operations in China, stated: ‘I am in favour of the concept, however why would UK corporations need to checklist in Shanghai? Corporations have proved this yr they will increase cash in London quickly.’
Sources near the London Stock Change stated it had not anticipated big numbers of listings because the scheme was targeted on giant corporations.
Tag: Stock Market