Capitalizing on the London-Shanghai Stock Connect Project

The world is now far more connected than ever. That’s because companies listed publicly in the United Kingdom can sell shares in China thanks to the launch of the London-Shanghai Stock Connect project. Companies listed in Shanghai can raise money through London’s stock market, and British firms can sell shares in Shanghai. This important development is both an opportunity and a challenge to UK firms to tell their stories effectively, especially on their websites, where potential investors from abroad are going to learn more about you.

The opportunity is huge. As reported in Reuters, China is expected to have more than $17 trillion ($13.5 trillion) in assets under management by 2030. But to seize that opportunity, UK firms need to know how to connect with potential investors outside the UK – and doing so is no easy task based on the challenges that businesses bring to us constantly.

For instance, a common obstacle we encounter is that businesses (UK and otherwise) struggle to tell a coherent narrative across their websites and digital channels were investors go to learn about them. According to a 2018 global survey we conducted with Forrester, only 25 percent of businesses rate themselves as very effective at consistently managing their brand values across digital channels. This shortcoming is a big problem because if investors don’t understand what you stand for, they are less likely to do business with you – especially as millennials and Gen Z gain more investing clout.

To capitalize on the London-Shanghai Connect opportunity, we suggest that businesses do a quick audit of how you tell your own story to investors. Ask these crucial questions:

• How clearly do you communicate your brand story on your website – not just the investor relations section, but everywhere? Is your narrative hampered by jargon and poorly written prose?
• How well do you humanize your brand through your corporate executives? Your management team is the voice of your brand to investors. Are you positioning them well? Are they visible on your site, and do they provide insight about your company through well-articulated investor briefings complemented by effective use of social media?
• What’s your visual storytelling strategy? Investors live and die by facts and figures, but especially in the digital world when attention is fleeting, you need to make your numbers come to life with effective use of visuals and video (we do this with clients all the time, as this post explains).
• Do you need localized content appropriate for an audience in China?

At IDX, we combine strategic insight with original ideas to help businesses connect with shareholders. We can help you succeed in China. Contact us to learn more.