HSBC confirms it is exploring a Chinese listing via new London-Shanghai link
HSBC confirmed today it is exploring a plan to sell its shares in China via a new London-Shanghai trading link.
A spokesperson for the bank said: “We are studying the proposed framework for the listing of Chinese depositary receipts under the Shanghai-London Stock Connect but cannot comment further at this time.”
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The Shanghai-London Stock Connect is a mechanism for cross-listing shares between China and the UK.
Under the proposed scheme, Chinese companies can raise money by issuing global depository receipts in London.
However, London-listed companies can initially only issue China depository receipts backed by existing shares, meaning they cannot raise funds through Shanghai listings.
The link has been in the pipeline since 2015.
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It is part of China’s attempts to connect its capital markets to the global financial system.
Earlier this month Chinese regulators published rules for the new link which could go live as soon as December.
Chinese brokerage Huatai Securities has previously said it aims to sell shares in London via the link with plans to raise up to $500m (£382m).