China Securities Regulatory Commission (CSRC) recently solicited opinions on the regulation of the Depositary Receipt (DR) business of Shanghai Stock Exchange and London Stock Exchange (LSE.L) market interconnection, which means that Huluntong will be open in the coming year. However, investors did not expect Hurontong in the context of large market differences between the two countries and the continued downturn of A shares.
Industry insiders generally expect that short-term investors will not be too enthusiastic to participate in real transactions, and wait-and-see sentiment will dominate, as the two markets are in different time zones and there are considerable differences in regulatory mechanisms, trading systems, market infrastructure and other aspects.
"Hu Tong Tong should be a gesture with greater meaning than substance." Zhang Gang, chief researcher of Southwest Securities, said that the initial scale of Huluntong will not be very large according to the current situation of Lugang Tong.
In the past, the interconnection between Chinese and foreign markets has not been smooth. In the past few years, China's domestic exchanges have tried to cooperate with foreign exchanges to develop their markets and customers, but the actual implementation process is quite long.

<>Shanghai link hopes to open in the year

 

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