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02:31
Chinese businesses are reaping the benefits of a new project that enables them to raise funds from global investors through listings on the London Stock Exchange.
The London-Shanghai Stock Connect is a program that has been developed by the Shanghai Stock Exchange and London Stock Exchange, alongside the UK and Chinese governments.
The aim is to enable Chinese and UK companies listed in Shanghai and London to increase their opportunity for investment by attracting new investors in those opposing markets.
Chinese energy giant SDIC is currently raising cash from London investors to build wind-powered turbines and a host of blue chip companies are likely to follow suit.
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Martina Garcia, the head of international market strategy at the London Stock Exchange, says the Stock Connect is allowing Chinese companies to open their doors to international markets.
She told CGTN: "The idea is that shares and investors can access a Chinese company in London, according to the global trading rules and the global settlement rules and still have access to the liquidity pool in Shanghai, which is huge and growing very fast. In that sense, it is a very sophisticated instrument and shows China's willingness to open up to the global market."
The biggest deal so far using Stock Connect came from China's Asia Pacific Insurance Group.
The second company to use the link since its launch in the summer last year, it raised $1.8 billion and was the UK's second largest stock listing of the year.
The Shanghai-London Stock Connect program allows companies listed in London and Shanghai to attract investment from opposing markets by raising cash from foreign investors./CGTN
Martina Garcia believes financial centers across the world will now be keen to learn from the Stock Connect program.
"I think the development of Shanghai as a global financial center is really astonishing," she added. "I think all financial centers will have lots to learn from how quickly they have developed."
London-Shanghai Stock Connect was five years in the making. When first devised, many Chinese companies were looking to the markets in New York to invest but now that has changed.
Despite global volatility in both politics and the markets, the cautious start for the new financial relationship between Shanghai and London could be the catalyst for a financially brighter future.