Building a Eurasian Capital Market: Understanding the Operating Mechanism and Legal Framework of Shanghai-London Stock Connect

Abstract

This article provides an in-depth analysis of laws and regulations relating to Shanghai-London Stock Connect (SLSC) which enables investors and public companies in both China and the UK to access each other’s capital markets. It introduces the history and latest developments of the SLSC. It considers the SLSC’s operating mechanism, including the East Bound and West Bound sub-schemes, and how the pilot scheme is regulated under Chinese and English laws. Moreover, it evaluates potential regulatory challenges posed by the SLSC.

Keywords: Shanghai-London Stock Connect, Capital Markets Law, Securities Regulation, Stock Market, Shanghai Stock Exchange, London Stock Exchange, China, Chinese Economy, IPO, Initial Public Offering, Share Listing