HSBC Holdings PLC is set to issue Chinese depositary receipts through a stock connect scheme between the Shanghai and London stock exchanges, becoming the first company to do so, Reuters reported Oct. 18, citing people familiar with the matter.

The move comes after China's securities regulator published rules for the issuing and trading depositary receipts between the two bourses. Under the rules, London-listed companies can issue CDRs on the Shanghai stock market and Shanghai-listed companies can issue global depository receipts on the London stock market.

It also comes after Huatai Securities Co. Ltd. said it plans to raise at least US$500 million by issuing up to 825,150,000 GDRs to qualified investors under the Shanghai-London shares link in September.

HSBC has tapped its investment banking joint venture in China and CITIC Securities Co. Ltd. for the issuance, the report said, adding that the size and time frame of the issuance are still under discussion and an initial plan will be announced by 2018-end.

An HSBC spokesman said they are studying a proposed framework for the listing of CDRs under the stock connect scheme but cannot comment further on the matter, while CITIC Securities did not respond to a request for comment, the report noted.