With the long-awaited Huluntong project to start on Monday, companies listed in London will be able to sell shares in China. Philip Hammond, the chancellor of the exchequer, called it an opportunity to deepen "global connectivity".
Through the Huluntong project, companies listed in Shanghai can raise new capital through the London Stock Market, and British companies can expand their investor base by selling existing shares in Shanghai.
According to the original plan, the project should be launched at the end of last year. Huatai Securities, a Chinese securities firm, listed in London in December last year, but the listing plan was delayed at the last minute. Alibaba (BABA.N) is a shareholder of Huatai Securities.
Huatai Securities (601688.SS) announced earlier this month that it planned to raise funds on the London Stock Exchange (LSE), effectively launching Huluntong.
Huatai Securities, one of China's largest brokerages, is expected to list on the London Stock Exchange on June 17, becoming the first company to trade through Huluntong.
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