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London-Shanghai Stock Link Takes a Step Closer to Reality

  • Depositary receipts in each city will be cornerstone
  • System will start this year, according to exchange document
Daily Life Across China
Photographer: Luke MacGregor/Bloomberg

The long-awaited link between stock exchanges in London and Shanghai is close to becoming a reality, according to a London Stock Exchange Group Plc presentation, another step in China’s efforts to integrate with the international financial system.

The London-Shanghai Stock Connect will start later this year, allowing companies from China to sell global depository receipts in the U.K. and enabling London-traded firms to list similar securities in Shanghai, according to the LSE presentation seen by Bloomberg News. The securities issued by Chinese companies will appear on what LSE calls the Shanghai Board. A spokesman for the U.K. exchange declined to comment.