Shanghai-London Stock Connect Sees Its Second IPO

Key takeaways:

• China Pacific Insurance is set to become the second Chinese company to list GDRs on the London Stock Exchange under the Shanghai-London Stock Connect scheme.
• The Stock Connect scheme was launched on 17 June 2019, connecting the London Stock Exchange with the Shanghai Stock Exchange, to enable companies listed on either market to list and trade depositary receipts on the other market.
• The initiative represents an opportunity for Chinese companies to market themselves to a new pool of investors in London.

INTRODUCTION

China Pacific Insurance, the first insurance company to be listed in Shanghai, Hong Kong and London, is set to become the second Chinese company to list global depositary receipts (“GDRs”) on the London Stock Exchange (the “LSE”) under the recently established Shanghai-London Stock Connect (“Stock Connect”) scheme. The listing represents the latest example of a trend for Chinese companies to seek an LSE listing, and thereby