Foreign banks and brokers have been preparing for the launch of Shanghai-London Stock Connect, but the platform continues to face nagging technical problems, Yicai.com reported.
“London has begun to set up the trading mechanism and it has put forward a proposal about the future operation, but for now, the time difference problem poses a big challenge to the trading hours and trading system,” said an insider from a foreign brokerage firm.
Meanwhile, both sides have appointed nearly ten brokerage firms as market makers. In the initial pilot stage, Global Depositary Receipts will be traded in US dollars, and China Depositary Receipts will be traded in Chinese yuan.
“As for specific issues, such as the cross-border conversion of Depositary Receipts, consultations are still ongoing, which could take a long time,” the insider added.
In late August, Zhang Shenfeng, assistant to the chairman of the China Securities Regulatory Commission, made clear the determination of the authority that they will continue to promote preparations for the stock link and strive to launch it within this year.