5 Things to Know About the Shanghai-London Stock Connect

The long-awaited Shanghai-London Stock Connect program launched Monday, nearly four years after it was first considered. Here’s what you need to know about it.

What is the connect program?

The program allows certain companies listed either on the Shanghai Stock Exchange or the London Stock Exchange to issue depositary receipts, which represent ownership of their shares, on the other bourse. Investors can buy these receipts to gain exposure to companies listed elsewhere. Companies can sell them to diversify their sources of funding.