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HSBC revisits plan to list shares in China as London-Shanghai stock link looms

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The HSBC headquarters building is seen in the Canary Wharf financial district in London, Britain. Photo: Reuters
Daniel Renin Shanghai

HSBC Holdings has begun revisiting a plan to list its shares on the mainland, putting it on track to become first foreign company to issue depositary receipts on the mainland under the scheme that links the Shanghai and London stock exchanges.

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The biggest lender in Hong Kong and Europe said in a statement on Thursday that it was studying the framework of the trading system, but would not comment further.

The remarks came after the Financial Times reported that HSBC would tap the connect to list shares on the mainland following an eight-year hiatus.

Under the depository receipts system, part of a company’s shares are transferred to a custodian bank before being traded by investors on an overseas bourse.

The stock connect scheme is set to become operational this year, according to the mainland securities regulator.

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But the timing of an HSBC’s mainland listing remains cloudy due to a weak market sentiment.

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