The Shanghai-London Stock Connect, a proposed program to link the two countries' stock markets, has passed the initial feasibility study and "good news" is expected very soon, Andrew Parmley, Lord Mayor of the City of London, told the Global Times on Saturday during a press conference held in Shanghai.
According to Parmley, the result of the feasibility study was positive and now the Chinese and British securities regulators are in phase two, which is exploring operational details. He said the major challenge is the eight-hour time difference between Shanghai and London.
Parmley stressed that both the UK government and the City of London are very supportive of the program. "I have heard nothing but support, so we are expecting good news very soon," he noted.
Similar to the Shanghai-Hong Kong Stock Connect program, which went into operation in November 2014, the Shanghai-London Stock Connect is expected to allow British investors to trade Chinese shares listed in Shanghai. The two countries agreed to conduct a feasibility study for the program when Chinese President Xi Jinping visited the UK in October 2015.
Parmley said that the Chinese government's tighter management of foreign currency is both a challenge and an opportunity, but he stressed that as the two countries move toward the Shanghai-London Stock Connect, people want to move large sums of money in and out of China with permission from the government.
