China has halted a flagship scheme for cross-border listings between the Shanghai and London stock exchanges, according to people familiar with the matter, amid UK government criticism of the crackdown on demonstrations in Hong Kong.

The London-Shanghai Stock Connect, which was first announced in 2015 and allows companies listed on one exchange to apply to sell shares on the other, was designed to deepen economic and financial ties between the UK and China.

An official at the Shanghai Stock Exchange, who asked not to be identified, said the Stock Connect had been postponed, with “no timetable” for restarting. An employee of Huatai Securities, the only Chinese company so far to use the scheme, added that the suspension was due to political reasons.