Securities watchdog backs Shanghai-London stock connect

BEIJING - China's securities watchdog said on Friday it will support exchanges in Shanghai and London to explore a stock-connect cooperation and undertake a feasibility study.

Talk of the stock-connect program surfaced after the Shanghai-Hong Kong stock-connect program was launched in Nov 2014, the China Securities Regulatory Commission said in a statement. The talks and exploration will benefit future cooperation, he added.

Given difference in time zone, supervision, trading mechanism and market basis between the two markets, the Shanghai-London connect cannot simply copy the link between Shanghai and Hong Kong, the statement said.

China and Britain agreed to expand financial cooperation by carrying out a feasibility study on a stock connect between London and Shanghai during the 7th China-Britain Economic and Financial Dialogue on Monday.