The Shenzhen and London stock exchanges have signed an agreement to further expand investment links between China and the UK.
The Shenzhen Stock Exchange and the London Stock Exchange Group (LSEG) signed a memorandum of understanding to «advance the establishment» of a «Shenzhen-London Connect» scheme, according to a statement.
The agreement includes cooperation in the issuance of depository receipts, indices and cross-border financing services.
This marks the second bridge between the capital markets and investors of China and the UK after the establishment of a Shanghai-London link in 2018 with the larger Shanghai Stock Exchange.
New York to Zurich
US-China tensions have, in part, driven offshore listings away from New York which saw Chinese firms raise $230 million through IPOs in 2022, down more than 98 percent compared to 2021’s $12.85 billion.
Switzerland has been a favored listing venue instead with Zurich-based Swiss Infrastructure and Exchange (SIX) accounting for 36 out of 41 Chinese companies seeking offshore listings since July 2022.
