Shanghai-London Stock Connect to include Germany, Switzerland

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British Chancellor of the Exchequer Philip Hammond and Chinese Vice-Premier Hu Chunhua react after the opening of the markets at the London Stock Exchange in London, Britain June 17, 2019. REUTERS/Henry Nicholls/Pool/File Photo

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BEIJING, Dec 17 (Reuters) - A stock connect scheme linking Shanghai and London will be broadened to include Shenzhen-listed companies, as well as capital markets in Germany and Switzerland, China's securities regulator said on Friday.

Expanding the Shanghai-London Stock Connect scheme helps facilitate cross-border investment and promotes the opening-up of China's capital markets, the China Securities Regulatory Commission (CSRC) said in a statement.

Under the current scheme, companies traded in Shanghai and London can list on each other's bourses, by selling so-called depository receipts. Chinese companies can raise fresh capital, but U.K.-listed companies can not, only allowed to issue Chinese Depository Receipts (CDRs) backed by existing shares.

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On Friday, CSRC published revised rules for consultation, allowing offshore companies to raise fresh capital under the scheme, which will expand to include Germany and Switzerland.

In addition, qualified Shenzhen-listed companies can also participate in the expanded program.

So far, four Chinese companies are listed on the London stock exchange under the scheme, but no U.K-listed firms have sold CDRs in Shanghai.

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Reporting by Beijing Newsroom; writing by Tom Daly; editing by Jason Neely and Louise Heavens

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