Expert: Shanghai-London stock connect benefits both countries

‍The introduction of a Shanghai-London stock connect scheme will be another landmark event of China’s further integration into the global economic order, said John Gong from the Beijing-based University of International Business and Economics.

China and the UK have agreed to accelerate preparations for a London-Shanghai stock connect program on the 9th annual UK-China Economic and Financial Dialogue.

"It means that China’s capital market is more internationalized, and the country’s currency RMB is more internationalized,"John Gong told CGTN.

"It will be easier for Chinese investors to invest in the equity market in London through the Shanghai stock exchange. It also facilitates British investors to invest in the Shanghai stock exchange,” Gong said.

The London-Shanghai stock connect is modeled after a similar scheme that links Hong Kong and Shanghai, and talks on realizing the scheme started two years ago. Technical and regulatory challenges still remain, partly due to the difference in time zones.

(CGTN)