Andrew Parmley, the Lord Mayor of the City of London Photo: Asia Times

The discussions on a Shanghai-London Stock Connect program are moving to a “second phase,” Lord Mayor of the City of London Andrew Parmley said in a Hong Kong briefing on Friday.

The Stock Connect is working well. We are moving to the second phase of discussions. We are working very hard with it,” Parmley said. “There is a widespread support in the UK government and certainly widespread support in the city of London. All the signs are good.”

The Shanghai-Hong Kong Stock Connect program started in November 2014 with a southbound investment quota of 10.5 billion yuan (US$1.53 billion) per trading day and a northbound quota of 13 billion yuan. The Shenzhen-Hong Kong Stock Connect program kicked off last December with a similar quota system.

The Shanghai-London Stock Connect was proposed by the Chinese and UK governments in 2015 but faced obstacles with a stock market crash in China in the same year and last year’s Brexit referendum.

Early last year, media reports said the Shanghai-London Stock Connect would kick off in September before the G20 meeting in Hangzhou. 

Liu Shiyu, chairman of the China Securities Regulatory Commission, said last September that Shanghai was speeding up the preparation work for its stock link scheme with London.