The Shanghai-Hong Kong Stock Connect, which has provided a channel for cross-border equity investments, raises question whether the Shanghai Stock Exchange’s proposed international board for foreign company listings is really necessary, a top banker said.
The stock link has evolved into a platform that can replace the planned international board amid liberalization of country’s capital account, said Benjamin Hung, Greater China chief executive for Standard Chartered Plc. (StanChart, 02888.HK).
As China opens up its markets and eases capital controls, it may no longer be necessary to establish an international board, he said, according to the Hong Kong Economic Journal.
The developments in China have prompted Standard Chartered to think that a mainland listing won’t be necessary for the bank, giving up earlier plans, Hung was quoted as saying.
Shanghai stock exchange had outlined plans five years ago to set up an international board for foreign company listings.
That led banks such as StanChart, HSBC Holdings Plc. (00005.HK) and The Bank of East Asia Ltd. (00023.HK) to consider secondary listings in China to tap into mainland capital.
But now some lenders, including StanChart, have given up the plans, according to Hung.
Translation by Vey Wong
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