In September 2015，China and the UK launched a feasibility study for a link between the Shanghai and London stock exchanges. That tie-up became a reality on June 17，2019 when the China Securities Regulatory Commission (CSRC) and the Financial Conduct Authority of the United Kingdom (FCA) announced the creation of the Shanghai-London Stock Connect program. On the same day，Huatai Securities，one of China’s largest brokerages，made its trading debut on the London Stock Exchange (LSE)，becoming the first company to trade via the new link.

The Shanghai-London Stock Connect is a mechanism that connects the London and Shanghai stock exchanges，and the initial stage of the program covered what is known as the westbound business. This allowed eligible companies listed on the Shanghai Stock Exchange (SSE) to issue Global Depositary Receipts (GDRs) and apply for their listing on the Main Market of the LSE. The UK’s Admission and Disclosure Standards provides that，to take part in the business，enterprises must comply with the laws and regulations of the FCA and the LSE as well as those in China. Additionally，rules set by the European Union need to be obeyed.

Procedure for GDR Issuance

The issuance of GDRs on the London Stock Exchange by enterprises from China should follow these steps: