Shanghai Luntong arrow on the string, institutions believe that activity is still to be cultivated – Economic Observer Online – Professional Finance News Website

(Source: Panoramic Vision)

Economic Observer Network Reporter Hong Xiaowei OfWith the basic landing of the relevant supporting rules, Huluntong sealed soon.

In the evening of December 4, the Shanghai Stock Exchange issued a report to China International Capital Corporation (UK) Limited to file a record for the Shanghai-based Global Depository Receipt (GDR) UK cross-border conversion agency.

According to Foreign Media News on the 4th, the London Stackchester Group will be the first to unveil the Shanghai Luntong and announce the list of companies on the 14. At that time, significant figures from the Shanghai Stock Exchange will attend and will announce the list of Chinese and English companies are selected, and the official opening of the Transaction will wait until January.

For this, the Huatai Securities issued an announcement. The company received the agreement of the XRC on November 30, 2018, and will issue no more than 8,251,000 GSRs according to the conversion ratio determined by the company, the corresponding A-share base stocks will not Exceed 8,2515 billion. Stock exchange. If the conversion ratio is adjusted, the number of GDR problems can be adjusted. After the completion of this issue, Huatai Securities can be listed on the London Stock Exchange.

The so-called "Huluntong" represents two listed companies that meet the requirements, issue depositary receipts in accordance with the laws and regulations of the other market, and list and trade in the other market, and apply by the cross-border conversion mechanism between departments And basic securities. Understand the interconnection between the two markets.

And Huluntong has entered the Countdown to "open to traffic". Does institutional investors want to invest in the listed companies in the UK? The reporter interviewed a significant person in a fund company in Shanghai, said that the opening of Shanghai Luntong opened the East-West business business. Before, Shanghai-Hong Kong Stack Connect opened the north-south direction, which means that the four business directions of the East, the West and the North are fully integrated. The Milestone of the Market.

"However, according to the past experience, the amount of depository receipts from Huluntong is not active." The man explains that "Huluntong does not use a basket of more than 100 stocks in Shanghai-Hong Kong stock link to select the target in both directions." Luntong may have fewer choices, and Huluntong adopts the Deposit Receipt Model, which means it You must be a listed company in the UK ready to issue the CDR to the Shanghai Stock Exchange (listed on the Shanghai Stock Exchange listed on the Shanghai Stock Exchange) and domestic listed companies have to get their hands to send the GDR (A-Share L Stead companies listed on the stock Department of Global depositors). It also involves the search for foreign kustodyan banks and agency brokers, etc., is a relatively complicated process. "

"For the time being, the number of listed companies that issue CDRs and GDRs is not expected to increase significantly, it is too early to put out products, so let's first look at them."

At the press conference of the Shanghai Municipal Government on July 11 this year, Li Jun, deputy director of the Financial Office, said that Huluntong adopted the CDR method based on the CDR of listed statements in Shanghai and London. Among the A-listed companies, in addition to Huatai Securities, Kangmei Pharmaceutical, Tassi, Oriental Pearl and Huayou Cobalt Express to Capture Depository Receipts by Huluntong, the four companies have discussed with significant parties, but still in the initial stage. ".

Zhang Quizhen, an analyst at Guosheng Securities, believes that the opening of Huluntong does not involve investors across the border. There is no direct incredential investment in the markets of the two places, but the investment targets and varieties are mutually increased. The historical split of overseas listings is rare, but the strength and pace of CDR issue is expected to be strictly controlled in the initial stage, and the liquidity of the A-share market is biased.

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