London’s financial community wants the proposed Shanghai-London Stock Connect plan to go ahead, insisting the United Kingdom’s exit from the European Union will not make the London Stock Exchange’s listings less attractive to Chinese investors.
They reasoned that London’s tougher listing rules compared with EU rules would make the exchange more attractive to high-quality new listings, and London is unlikely to lose its strength as a financial center post-Brexit.
The plan, already the subject of a feasibility study by the LSE, faced delay, according to the South China Morning Post on June 27, because the Chinese regulator – the China Securities Regulatory Commission – was having doubts over Brexit.
The SCMP quoted an anonymous fund manager as saying the plan to go ahead soon with the scheme has been affected, and it would take some time before regulators could consider launching the plan.
The Hong Kong paper also quoted Que Bo, a deputy general manager of the Shanghai Stock Exchange, as saying that Brexit would be a “complicated issue” and the local bourse would enlist the help of other parties to further study and assess the situation.
The LSE has confirmed the feasibility study is continuing.