Another small step in China’s move to financial liberalisation

China took further steps in financial liberalisation in June. The Shanghai-London Stock Connect scheme was launched on 17th June, and the China-Japan ETF Connectivity scheme was launched on the 25th June.  The former enables UK and mainland Chinese firms to list on each other’s stock market and allows their investors to trade these foreign stocks in the form of depository receipts.  The latter allows Chinese and Japanese investors to invest in each other’s markets via locally listed ETF products.