London Stock Exchange and Haitong Securities Sign Agreement

London Stock Exchange and Haitong Securities Sign Agreement

London Stock Exchange and Haitong Securities Sign Agreement

The FINANCIAL -- London Stock Exchange Group (LSEG) on June 10 signed a memorandum of understanding (MoU) with Haitong Securities.

The agreement was signed by London Stock Exchange plc CEO, Alexander Justham and Haitong Securities Chairman, Wang Kaiguo, according to London Stock Exchange Group.

Following the MoU, the two parties will work closely together to:

Collaborate around RMB ETFs tracking Chinese securities

Develop RMB fixed income product innovation

Facilitate Chinese investors to access the London Stock Exchange Group Capital Markets

Help promote London IPO opportunities to Chinese corporates

Explore opportunities to co-operate on new index and derivatives products

The signing ceremony, held at LSEG’s Paternoster Square headquarters followed a special Market Open Ceremony in which Haitong Securities Chairman, Wang Kaiguo formally opened London market trading. The agreement also comes a week before the Group hosts a major two day Capital Markets conference in Hong Kong, demonstrating its burgeoning relationship with the Chinese market.

Alexander Justham, CEO, London Stock Exchange plc said:

“London is the world’s most international financial market and a natural partner to China in its global development. We are fully committed to supporting Haitong Securities’ ambitions and working to develop the off-shore RMB market in London as well as facilitating closer ties between London and Chinese capital markets.  Our agreement today will accelerate progress towards significant and exciting milestones in this important new chapter in global finance.”

Wang Kaiguo, Chairman of Haitong Securities Co. Limited said:

“As China’s Capital Markets gradually open up, an increasing number of Chinese enterprises are seeking overseas development. These new market dynamics have generated plenty of cross-border financing and investment opportunities.  Haitong Securities and London Stock Exchange Group are both mature financial services providers, and each has a unique but complementary advantage in the global financial services industry. This memorandum of understanding (MoU) with London Stock Exchange Group formalises co-operation between both parties and is aimed at seizing the opportunities posed by these new market dynamics to better serve clients’ needs.”

Haitong Securities is one of the leading securities firms in China. Its business areas include brokerage, investment banking, asset management, funds, margin trading & short selling, futures and Private Equity investments. In December 2014, Haitong signed a sale and purchase agreement to acquire BESI (subject to regulatory approvals), significantly improving its international capabilities, particularly in Europe and the Americas.

LSEG has a strong track record of supporting Chinese equity and debt issuance on its markets. 57 Chinese companies are quoted in London - 8 on the Main Market and 49 on AIM. In addition, there are 32 so-called dim sum bonds on London Stock Exchange’s markets, with an aggregate value of RMB 24 billion.