This Day, That Year

This year marks the 70th anniversary of the founding of New China.

Editor’s note:

On March 21, 1997, Datang Power Generation Co made its debut on the London Stock Exchange, becoming the first Chinese company listed in the international financial center, as seen in the item from China Daily.

There have been 110 Chinese company listings in London between 1997 and 2016.

However, the majority delisted mainly due to their own corporate governance issues or investor distrust.

Last month, China Merchants Securities (UK) celebrated becoming the newest Chinese member of the London Stock Exchange, a milestone that highlights the increasingly close financial links between China and the United Kingdom.

The London Stock Exchange now has 12 members from China, including Bank of China International, China Construction Bank and GF Financial Markets.

To further open up the financial markets to a greater number of international investors, a longawaited trading program between the Shanghai and London stock exchanges has entered the final phase of preparations.

The stock connect program, which has been in the pipeline since 2015, is part of China’s effort to promote the opening up of its financial market.

It will work by allowing companies that are listed on Shanghai and London’s respective stock exchanges to crosslist depository receipts on the exchange of the other.

Analysts said through this arrangement, Chinese and Western investors will be able to enjoy the same benefits of holding stocks in each other’s markets.