22nd Nov 2018 11:40
LONDON (Alliance News) - Huatai Securities Co Ltd said intends to list global depositary receipts in London under a stock market linkage between the London Stock Exchange and the Shanghai Stock Exchange.
The brokerage and wealth management business will list on the Shanghai-London Stock Connect segment of the main market of the LSE in mid December, the first Chinese company to do so under the scheme.
The programme is part of a plan to link China's public equity markets with those of other countries. The scheme could see global investors trading shares in Chinese companies and Chinese investors buying shares in London-listed companies.
"The Shanghai-London Stock Connect is the first of its kind to directly link the Chinese and European markets and a strategic component of China's capital markets reform. The programme offers us access to one of the deepest and most influential capital markets in the world and provides fungibility between the GDRs and the A Shares. The offering will improve our core competitiveness by supporting the growth of our international business, further expanding our overseas footprint, and strengthening our capital position. We are pleased to be the first issuer to tap this new market of enormous potential and unprecedented opportunity," said Huatai Chairman & Chief Executive Officer Zhou Yi.
Huatai Securities intends to offer 82.5 million global depositary receipts, with each GDR representing 10 A shares of the company. The company expects to raise not less than USD500 million from the offering.
JPMorgan Securities PLC, Huatai Financial Holdings (Hong Kong) Ltd and Morgan Stanley & Co. International PLC are acting as joint global co-ordinators and joint bookrunners. Credit Suisse Securities (Europe) Ltd is acting as a joint bookrunner.
In October, the Financial Times newspaper reported that HSBC Holdings PLC could become the first foreign company to trade on a Chinese stock exchange as part of the Connect scheme. It could offer Chinese Depositary Receipts - a tradeable security that reflects underlying shares listed elsewhere, the FT reported.
Shares in HSBC were trading 1.7% lower at 649.20 pence each on Thursday morning.
Related Shares:
HSBC Holdings