China approves second listing for Shanghai-London Stock Connect amid strained Sino-British ties
- China revives Shanghai-London Stock Connect as the US threatens to bar Chinese companies from American bourses
- Approval for insurer comes amid fraught Sino-British ties over China’s perceived assault on Hong Kong’s autonomy
China Pacific Insurance, the fourth-largest by revenue, plans to issue 126 million global depositary receipts (GDRs) on London Stock Exchange after getting approval from the China Securities Regulatory Commission, it said in a filing on Wednesday.
The GDRs represent about 10 per cent of the insurer’s A shares traded on the Shanghai stock exchange, it said. Swiss Re, the world’s second-largest reinsurer, will take up part of the offering, it added. The listing is subject to approval from LSE, which did not immediately reply to an email seeking comment.
Despite potential risks stemming from the UK's stance on Hong Kong, China still has a better relationship with the country than with the US, Alan Li, portfolio manager at Atta Capital in Hong Kong.
“The UK may be performing its duties under the Sino-British Joint Declaration, but it has not gone towards the direction of sanctions or containment of China [like the US]," said Li. "China may quicken the development of the Stock Connect to cushion the impact from the US.”