HSBC looks set to be the first offshore company to trade on a mainland Chinese stock exchange, taking advantage of the highly-anticipated London-Shanghai stock link planned for launch later this year.
In what one source said is a “symbolic” debut participant for the program, the move will fulfill HSBC’s long-held ambitions to sell shares in China. The first mention of trading in Shanghai were made back in 2007 when a similar international stock link plan was proposed but later shelved.
“They have been trying to do this for years and this could be the time they succeed,” said one person with insider knowledge to the Financial Times.
The London-Shanghai Stock Connect will offer investors a reduced-friction gateway to securities listed in the other city. Firms trading on the LSE will also be able to sell shares in the form of renminbi-denominated China depositary receipts (CDRs) on the Shanghai bourse.