The Chinese government has temporarily put a stop to the cooperation of stock exchanges in London and Shanghai. Sources reported this to Reuters news agency. Reportedly, the reason for that move is Britain’s attitude to the ongoing protests in Hong Kong. Beijing accuses the British government of being involved in the protests in Hong Kong that China regards as domestic affairs.
The stock exchange companies have been cooperating since last year through the so-called Shanghai-London Stock Connect project. This offers the possibility for Chinese companies to have a double listing in London, while investors in mainland China have access to British listed companies. The cooperation was intended as a way to strengthen the economic ties between Great Britain and China. The financial markets in China were thus further opened up to foreign investors.
But political developments now throw a spanner in the works, the insiders say. Beijing is said to be displeased with the alleged support that London has expressed for the demonstrators in Hong Kong and the criticism by the British government of the Hong Kong authorities and police in the matter.