Companies listed on the London and Shanghai stock exchanges will be able to sell shares in the other country as early as December 3rd, Bloomberg reports, potentially giving a timely-boost to China’s ailing domestic markets.
The stock link, a project first proposed in 2015, will allow UK-listed firms of at least RMB 20 billion ($2.9 billion) market value to issue depositary receipts (securities akin to equities) on mainland China. The sale will be open to investors with a minimum RMB 3 million securities account, according to state-run Shanghai Securities News.
London-listed firms participating in the link will must also have been public for at least three years and prepared to issue at least RMB 500 million. The depositary receipts will be subject to existing daily price change caps of 10%.
Chinese companies listing in London must already be listed in Shanghai and worth at least RMB 20 billion. Issuances will be capped at 15% of their total share capital in the UK, London Stock Exchange Group has previously said.