When China makes a move, it does so quietly. That’s why three years ago when it became one of the largest investors in the UK stock market, no one blinked.
It’s also why few people noticed this week when a subsidiary of China’s sovereign wealth fund became the very first Chinese firm to join the London Stock Exchange as a member. But this quiet move could open the gates to a flood of Chinese investment in the UK and Europe.
The LSE announced – with a whisper- on Wednesday that China International Capital Corporation (CICC), a subsidiary of China Investment Corporation (CIC), had become the first Chinese company to join the LSE’s 400-plus member community. The move, done with little fanfare, is significant because it gives the Chinese investment bank the ability to trade directly on the LSE without going through a broker.