China Merchants Securities (UK) celebrated becoming a member of the London Stock Exchange on Friday. The milestone will allow CMSUK to help its clients trade the diverse selection of financial products listed on the LSE, such as stocks and bonds.
Currently the LSE has 12 members from the Greater China region, including Bank of China International, China Construction Bank and GF Financial Markets.
"Being a member of the LSE will (help us) provide Asian investors with a rich selection of products and capabilities to directly participate in Europe's largest stock exchange," said Zhang Wei, CFO of CMSUK.
"At the same time, it is favorable to consolidate the advantageous position of the relevant businesses of CMS International to serve the Belt and Road Initiative," said Zhang.
Brian Schwieger, co-head of Equities, ETFs and Fixed Income of the LSE, added: "Welcoming CMSUK as a member firm is another step in our journey towards greater collaboration and partnership with China.
"It underscores the unique and increasing appeal that London holds as the venue of choice for Chinese investment, trading and capital raising, " Schwieger said.
China Merchants Securities is one of China's oldest and largest securities houses. It established a UK subsidiary in 2013 and over the past few years helped its clients trade commodities through the London Metals Exchange and Intercontinental Exchange.
China Merchants Securities' latest UK milestone comes as the London Stock Exchange continues to develop its China links, with preparations for the much-anticipated Shanghai London Stock Connect well underway.
The connect has attracted great interest from Chinese investors looking to diversify their portfolio by purchasing overseas stocks and global investors looking to buy into China's high growth firms.
The connect works by allowing companies listed on Shanghai and London's respective stock exchanges to cross-list depository receipts on the other exchange.
Through this arrangement, Chinese and Western investors can enjoy the same benefits of holding stocks in each other's markets.
Schwieger said China Merchants Securities and other Chinese financial companies' increasing participation in the London Stock Exchange's activities can play a crucial role in raising awareness of China opportunities and fostering London-based investors' interest to access opportunities through the connect.
