Shenzhen and Abu Dhabi exchanges signed MoU on cooperation

Shenzhen Stock Exchange and Abu Dhabi Securities Exchange (ADX) inked a memorandum of understanding on cooperation in Abu Dhabi, the capital of the United Arab Emirates, on Wednesday.

The MoU aims to expand the China-UAE capital market cooperation and serve the integrated development of both countries' real economies. The two bourses said they are committed to encouraging market players from both sides to participate in a cross-border index, fixed-income and other investment product cooperation.

They agreed to jointly research the feasibility of ETF product link and depository receipt mechanism to facilitate the cross-border financing of listed companies in each other's market.

Abdulla Salem Al Nuaimi, chief executive officer of ADX, believes the collaboration with SZSE is a "milestone" in ADX's global integration journey.

"This MoU establishes a foundation for enhanced cooperation and innovation, unlocking new prospects for investors and stakeholders in the Chinese mainland. ADX and SZSE will jointly explore opportunities in financial services, tapping into the dynamic markets of the UAE and China. This strategic partnership underscores our mutual dedication to knowledge exchange, collaborative learning, and the development of innovative products to propel the financial sector forward."

Tang Rui, executive vice president of SZSE, said the two exchanges would "set a role model of openness and cooperation for the China-UAE capital market".

The SZSE is devoted to further deepening the connectivity with overseas capital markets, enhancing the synergy of the resources in both domestic and international markets, and contributing more to the new development paradigm and high-quality development.

On Dec 10, the Shenzhen exchange also signed a MoU with Saudi Tadawul Group, operator of the Saudi Stock Exchange, to expand financial cooperation of a potential ETF connect and establish a China-Saudi Arabia cross-border capital service mechanism.