HSBC could be listing shares in China

HSBC Holdings Plc is examining plans for the upcoming Shanghai-London trading link, a move that could see Europe’s largest bank list shares in China.

HSBC is the first UK company to publicly state an interest in taking part in the programme, which will allow firms listed on exchanges in either of the two cities to issue depositary receipts on the other’s venue. “We are studying the proposed framework for the listing of Chinese depositary receipts under the ShanghaiLondon Stock Connect but cannot comment further at this time,” HSBC’s Hong Kong-based spokeswoman Vinh Tran said.

An HSBC listing using the connection would be a boost for Chinese authorities, who have watched their benchmark index fall more than 20 per cent this year amid a worsening economy and an escalating trade war with the US.

The plan to issue London Stock Exchange-listed HSBC shares in Shanghai is viewed as a symbolic step after years of planning. “There’s strong demand for foreign stocks among mainland investors in China,” said Stanislas Beneteau, UK head of financial intermediaries and corporates at BNP Paribas. “We are seeing interest from clients.”