China Pacific Insurance Becomes Second Chinese Firm to List in London

Source: Regulation Asia Editors, Regulation Asia 2020-06-18

The issuance is the largest capital raising on the LSE in three years, even at a 10% discount to China Pacific Insurance’s corresponding A-shares in Shanghai.

China Pacific Insurance on Wednesday (17 June) became the second Chinese company to list depositary receipts on the LSE (London Stock Exchange) via the Shanghai-London Stock Connect.

The Shanghai-London Stock Connect programme marked its launch in June 2019 with the listing of Huatai Securities GDRs (global depositary receipts) on the LSE.

Following delays said to be caused by political concerns, Chinese regulators resumed its approvals for such listing applications earlier this year. Domestic firms have been urged to raise funds in London as part of a bid to strengthen China’s overseas ties, amid an intensifying clampdown on Chinese companies listed in the US.

China Pacific Insurance received clearance to list in London from the CBIRC (China Banking and Insurance Regulatory Commission) in May and the CSRC (China Securities Regulatory Commission earlier this month.

On Wednesday, China Pacific Insurance raised USD 1.8 billion through the sale of its GDRs, proceeds that will be used to support its global expansion.

“We are pleased to welcome China Pacific Insurance Company, one of the world’s largest insurance companies, to be admitted to trading through Shanghai-London Stock Connect,” said LSE chief executive Nikhil Rathi. “The listing demonstrates how Shanghai-London Stock Connect has been promoting the collaboration between two of the world’s largest and most vibrant capital markets.”

The issuance is the largest capital raising on the LSE in three years, even at a 10 percent discount to China Pacific Insurance’s corresponding A-shares in Shanghai.

The listing ceremony was held via a remote connection.

The SSE (Shanghai Stock Exchange) said it will continue to strengthen capital markets cooperation between Shanghai and London and promote the two-way opening of mutually beneficial business between the two markets.

London Stock Exchange

China Pacific Insurance

Shanghai-London Stock Connect

China Pacific Insurance Becomes Second Chinese Firm to List in London

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