Chinese stock listings in Europe face liquidity hurdle

SHANGHAI/SINGAPORE, April 20 (Reuters) – China’s ambitious plan to get its companies listed in London and Zurich stock markets needs fine-tuning, analysts say, as the sparse liquidity in traded Chinese companies there has created market arbitrage opportunities for investors. The Shanghai-London Stock Connect has seen only five Chinese companies issue Global Depository Receipts (GDRs) in London in its four years of operation, and another 13 are listed in Switzerland via a younger rival Connect link. GDRs allow investors to buy shares of foreign companies in their local exchanges. The small cohort of participants has failed to generate enough demand for…