• Osborne has this morning announced plans of a link between the two markets
• Investors in both countries might benefit from simpler ways of trading
• Ian Forrest from The Share Centre analyses the impact on personal investors
As George Osborne announces plans of a UK-China stock market link this morning, Ian Forrest, investment research analyst at The Share Centre, explains what it could means for investors.
“The Chancellor George Osborne has today announced plans to look at ways of linking the UK and Chinese stock markets. The intention would be to enable investors in both countries to trade more easily in their respective shares. We believe this would be great news for British investors as it would give them direct access to the growing Chinese market. Despite recent events, the vast Chinese economy is likely to keep growing steadily for the foreseeable future.
“The move would also benefit UK companies as the growing number of Chinese investors would have easier access and be able trade in their shares. Given the 300-year history of the London Stock Exchange the link would enable the Chinese to tap the significant store of knowledge and experience built up by the operators of the British market. A win-win all round in our opinion.”