PBC governor Yi Gang attended a sub forum at the Boao Forum for Asia 2018 on Wednesday. (Photo: VCG)
The preparation work of the Shanghai-London stock connect is being conducted thoroughly and is expected to be rolled out in 2018, said Yi Gang, governor of the People’s Bank of China, at a sub-forum of the Boao Forum for Asia 2018 on Wednesday.
Most of the measures for China’s financial opening-up would have been in place by June 30, said Yi at the “Normalization of Monetary Policy” sub-forum.
The mode of the Shanghai-London stock connect will be different from that of the Shanghai-Hong Kong stock connect, business news website yicai.com reported in January.
The report says the Shanghai-London stock connect is a cross-boundary investment channel, which requires a special mechanism that allows Chinese investors to buy stock in the London market during non-trading hours due to time zone differences.
China's A-share market uses a T+1 transaction mechanism, while stock markets in Europe and the US use a T+0 transaction mechanism.
Solving the problem caused by transaction mechanism differences is a top priority when conducting cross-boundary transactions, said Fang Fang, vice-director of Shanghai Stock Exchange's transaction department, China Daily reported.
