London Stock Exchange to offer Membership to Hong Kong firms

London Stock Exchange to offer Membership to Hong Kong firms

London Stock Exchange to offer Membership to Hong Kong firms

The FINANCIAL -- London Stock Exchange plc on June 15 announces it has received regulatory approval from Hong Kong’s Securities and Futures Commission to allow Hong Kong firms to become Members of London Stock Exchange.

Membership allows trading firms to connect directly to Europe’s most liquid and international orderbook, and to trade central counterparty cleared securities including some of the world’s largest and well known companies. In addition the same connection provides access to London Stock Exchange Derivatives Market which provides trading in derivative contracts in UK securities and Global Depositary Receipts, according to London Stock Exchange.

Alexander Justham, CEO, London Stock Exchange plc said:

"This is a significant development in further deepening the ties between London, Hong Kong and China. As Members of London Stock Exchange, Hong Kong firms will be able to offer their customers access to the most liquid European market. Like Hong Kong, London has always been a market open to the world and we are excited about the increasingly strong relationship being forged between these two exceptional global financial centres."

The agreement also comes on the day London Stock Exchange Group hosts its second annual Greater China Capital Markets conference. Since 1 January 2014, the Group has built considerably on its relationship with Greater China: 7 new Chinese companies have been admitted to London Stock Exchange; 10 new RMB bonds have been issued in London and six new RQFII ETFs have listed on the market, including the first ETF in Europe denominated in RMB.

In the same period, the Group has also signed four memoranda of understanding with leading Chinese market participants including Agricultural Bank of China, Bank of China, China Construction Bank and Haitong Securities.