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Despite government efforts, China-Europe stock connects fail to take flight

China has taken recent steps to boost listings by its companies in Britain and Germany, but weak liquidity and geopolitical tensions remain big deterrents

During an early December Sino-British investment conference in Shanghai, Jon Edwards, the London Stock Exchange Group’s (LSEG) chief China representative, courted Chinese companies seeking to tap international capital markets. "If you want to develop your business in Europe, or in the Middle East, we think the London Stock Exchange is your best choice," Edwards told the audience, speaking in Mandarin.

He pointed out that the LSE is one of the world’s largest stock exchanges, has strong liquidity and a diverse investor base. And in a pitch to companies that might worry about future obstacles from an upcoming Donald Trump presidency, he pointed out that "If you don't want to list in the U.S. due to geopolitical concerns, you can come to London."

His pitch came a month before British Finance Minister Rachel Reeves' planned visit to Beijing in early January, aimed at forging closer financial ties. It also came after a recent visit by Shanghai Stock Exchange officials to London, Germany and Switzerland to promote tie-ups.

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