Linklaters advises on the first IPO via the Shanghai-London Stock Connect scheme

Linklaters acted for the underwriters on the US$1.538 billion IPO of Huatai Securities, the first IPO under the new Shanghai-London Stock Connect scheme.

Huatai Securities, one of China’s major brokerages, is the first PRC company to be listed across the London, Hong Kong and Shanghai Stock Exchanges, using the new Shanghai segment of the London Stock Exchange.

Under the newly launched Stock Connect scheme, Shanghai-listed companies can list global depositary receipts on the London Stock Exchange and access a global investor base. It also enables large London-listed companies to list depositary receipts on the Shanghai Stock Exchange.

The intention to link the London and Shanghai Stock Exchanges was first announced in 2015 and officially launched in June 2019. This initiative forms part of the cities’ efforts to build greater economic ties as China looks to open its markets. The launch of the Stock Connect took place during Chinese vice premier Hu Chunhua’s visit to London for talks with Chancellor Philip Hammond where they discussed plans to strengthen the strategic partnership between China and Britain. 

The Linklaters team was led by partners Pam Shores and Tom Thorne in London, John Xu in Shanghai and Iris Leung in Hong Kong. 
Shanghai corporate partner, John Xu, commented: 

“The transaction required multi-jurisdictional expertise to resolve the complicated issues that arose on the deal and to reconcile PRC, HK, UK and US regulations and market practices. Our team benefitted from prior experience designing and advising on regulatory and legal issues affecting the launch of Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect and Bond Connect programmes.”


London capital markets partner, Pam Shores, commented:

“This deal is significant because it’s the first to list under the much anticipated link with the Shanghai Stock Exchange and there is strong hope that there are more in the pipeline as the UK attempts to deepen financial cooperation with China.”