HSBC could become the first foreign company to trade on a Chinese index with plans for a new stock exchange link between London and Shanghai, the Financial Times reported Thursday.
"In a move that has been in the making for more than a decade, the London-Shanghai stock connect plans to make the bank the first offering of Chinese depositary receipts — a tradeable security that reflects underlying shares listed elsewhere," the FT's Don Weinland and Emma Dunkley reported.
The London-Shanghai stock connect could link the London Stock Exchange (LSE) with the Shanghai Stock Exchange, allowing international investors to access shares in Chinese companies and for Chinese investors to buy stocks listed on the LSE.
"The plan to offer HSBC stock in Shanghai is viewed as a symbolic listing following years of planning," the FT said, citing two unnamed people with knowledge of the matter.
Asked to comment on the report, a spokesperson for the bank told CNBC: "We are studying the proposed framework for the listing of Chinese Depositary Receipts under the Shanghai-London Stock Connect but cannot comment further at this time."