The highly anticipated share price project between London and Shanghai is launched

LONDON (Reuters) – British listed companies will be able to sell shares in China on Monday with the launch of a long-awaited project between London and Shanghai Stock Connect, which Finance Minister Philip Hammond has called a chance to sell. deepen "global connectivity".

As part of the Connect program, companies listed in Shanghai can raise new funds through the London Stock Exchange, while UK companies can expand their investor base by selling existing shares in Shanghai.

The project was scheduled to start late last year with Huatai's listing on the Chinese brokerage in December, backed by Alibaba Group Holding Ltd., but the announcement was delayed at the last minute.

Huatai Securities Co Ltd then effectively launched Connect earlier this month with the announcement of the intention to raise funds on the London Stock Exchange (LSE).

Huatai, one of the largest brokerage firms in China, is expected to debut in the London market on June 17, becoming the first company to be traded via the London-Shanghai Stock Connect project.

From Monday, London investors will have the opportunity to exchange global certificates of deposit in Huatai.

Hammond, launch of the first trading day of Stock Connect at the LSE, should say: "London is a unique global financial center and today's launch is a strong vote of confidence in the UK market".

"Stock Connect is an innovative initiative that will deepen our global connectivity as we look to new opportunities in Asia," he said, according to excerpts from his comments provided by the Ministry of Finance.

(Report by Elizabeth Piper, Edited by Jane Merriman)