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Huatai's GDRs leap in Britain's first IPO via London-Shanghai connect scheme

Huatai's GDRs leap in Britain's first IPO via London-Shanghai connect scheme
FILE PHOTO: A man walks past a branch of Chinese brokerage Huatai Securities in Nanjing, Jiangsu province, China January 26, 2014. REUTERS/Stringer -
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CHINA STRINGER NETWORK(Reuters)
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LONDON (Reuters) – Global depositary receipts (GDRs) in China’s Huatai Securities <601688.SS> <HTSCq.L> rose more than 7% after their debut in London on Monday in Britain’s first listing via the long-awaited London-Shanghai stock connect project.

Under the newly-launched Connect scheme, Shanghai-listed companies can raise new funds via London’s stock market while British companies can broaden their investor base by selling existing shares in Shanghai.

Finance minister Philip Hammond launched Stock Connect’s first day of trading at the London Stock Exchange calling it a “a ground-breaking initiative, which will deepen our global connectivity as we look outwards to new opportunities in Asia.”

Huatai, one of China’s largest brokerages, sold 75 million global depositary receipts (GDRs) at $20.50 each on June 14, the bottom of its price range, representing 9.1% of its outstanding share capital.

The stock rose 7.1% to $21.95 at 0802 GMT.

(Reporting by Pamela Barbaglia, editing by Louise Heavens)

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