London Stock Exchange Extends Consultation on Shanghai-London Stock Connect Changes

London Stock Exchange plc is currently consulting on amendments to the Admission and Disclosure Standards as published in Stock Exchange Notice N12/22. The consultation period is scheduled to close on 11 July 2022 and will now be extended to 1 August 2022.

This enables the exchange to pose further questions and make further changes on the proposed launch of the Voluntary Carbon Market designation and to accommodate changes to the Standards in respect of Stock Connect, following rule changes by the China Securities Regulatory Commission and consideration of this in relation to the listing of global depositary receipts from issuers in China.

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The proposed Stock Connect changes will be in addition to, and will not impact, the proposed changes to the Standards as currently set out in the current consultation.

In Stock Exchange Notice N12/22, the exchange noted that it would be considering extending the proposed Voluntary Carbon Market designation beyond fund structures. Further to this, the exchange has received interest to extend the designation at launch to permit companies operating in the voluntary carbon sector. Such an extension will require amendments to the proposed new Schedule 8 of the Standards.

Following the launch of Shanghai-London Stock Connect in June 2019, the exchange now proposes to extend the markets eligible for Shanghai-London Stock Connect. In addition to Shanghai Stock Exchange Main Board issuers, qualifying issuers admitted to the Science and Technology Board of the Shanghai Stock Exchange will also be able to apply for admission to trading via Shanghai-London Stock Connect.

Following collaboration between the exchange and the Shenzhen Stock Exchange, qualifying issuers admitted to either Shenzhen Stock Exchange's Main Board Market or its ChiNext Market will now also be able to apply for admission to trading via Shenzhen-London Stock Connect.

In addition, the exchange proposes to remove the minimum market capitalisation criteria given that Shanghai-London Stock Connect and Shenzhen-London Stock Connect issuers are required to admit the global depositary receipts to the Main Market, which does not have market capitalisation restrictions based on the country of jurisdiction.