China Sets Share-Swap Limits for London-Shanghai Stock Link
- Caps put on number of securities and trading between markets
- Deadline for public feedback to proposed rules is Sept. 15
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China published proposed rules for the link between stock exchanges in London and Shanghai, outlining how the long-discussed project will work in tandem with the country’s capital controls.
Companies seeking to take part will need to meet thresholds including a minimum value, and there will be limits on how many securities can be issued and how they’ll be traded between markets, according to statements from the China Securities Regulatory Commission and Shanghai Stock Exchange. The system will see listed firms from each nation sell depositary receipts in the other’s country.