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The 9th China-UK Economic and Financial Dialogue was held in Beijing on December 16, 2017. In the policy results released afterwards, China and the UK showed their greetings to the progress in the study and preparation for relevant operational mechanism and arrangement of Shanghai-London Stock Connect and agreed to make further research in the listing of qualified listed companies in the other's market through depository receipt, thus realizing the mutual connect of the two markets. Besides, China and the UK agreed to accelerate the preparation and study the time of launching Shanghai-London Stock Connect.
Since the Chinese and UK governments announced the launch of the feasibility research in Shanghai-London Stock Connect in 2015, the Shanghai Stock Exchange (SSE) has paid great attention to it and has, under the great support and direct guidance of the China Securities Regulatory Commission (CSRC), established the Shanghai-London Stock Connect Leadership Group and Working Group to carry out relevant research. The SSE and the London Stock Exchange (LSE) have established good communication and working mechanisms and advanced various studies and system design through high-level consultation and co-working. Through their concerted efforts and coordination, they have overcome various obstacles in language, time zone, market system and legal system, finally completed the feasibility research report on the mutual connect of the stock markets in China and the UK, and submitted the report to the governments and the regulatory organizations of the two countries. The SSE and the LSE believed that depository receipt is suitable for realizing the mutual connect between the two stock markets in different time zones and with great difference in openness level and market system. The depository receipt presents a mature business pattern and greater commercial feasibility, and it is easy to implement and control risks, which will help to protect investors of both sides, expand the two-way opening-up of the capital market in China and realize the cooperation between the Chinese and UK capital markets.
It is pointed out in the Report of the 19th CPC National Congress to "facilitate the formation of the new overall openness pattern". Opening-up is the only road to realize national prosperity and the inevitable trend of the development of China's capital market. The SSE will grasp the advantage of the openness of the capital market and, under the instruction of the requirements of the 19th CPC National Congress and with the greater sense of mission and responsibility, it will earnestly implement the results of the 9th China-UK Economic and Financial Dialogue, strength the cooperation with the LSE, further study relevant system design, and steadily fuel the preparation for Shanghai-London Stock Connect.
