On December 10th, 2023, Shenzhen Stock Exchange (SZSE) and Saudi Tadawul Group (STG) signed a Memorandum of Understanding (MoU) on cooperation in Riyadh, Saudi Arabia, to further promote the pragmatic cooperation between China’s and Saudi Arabia’s capital markets. Ms. Tang Rui, Executive Vice President of SZSE, and Mr. AlHasan Ashram, Group Chief Operations Officer of STG, signed the MoU on behalf of both parties.
With the intention of further strengthening multi-level communication and cooperation between the two capital markets, the SZSE and the STG underscored in the MoU their willingness to carry out multiple cooperation in areas including experience sharing and mutual learning in the aspects of ESG, FinTech, investor education and services, enterprise cultivation, and to support the high-quality development of the two markets. The two sides will also jointly conduct research on cooperation of products such as indices, funds and REITs, explore the collaboration opportunities in the ETF product link and cross-listing of listed companies, and explore the collaboration in forming the China-Saudi cross-border capital service mechanism based on SZSE’s V-Next platform, so as to encourage the cross-border investment of market entities from both sides, and to promote in-depth cooperation of the capital markets in China and Saudi Arabia.
Ms. Tang Rui said, “With the signing of the MoU, the two sides will strengthen the complementarity of advantages, enhance consensus on development, and conduct practical cooperation in ESG and FinTech among other areas. The two exchanges will jointly promote cross-border link of products such as indices and ETFs, build cross-border investment and financing services platform for both countries’ enterprises and investment institutions, and enhance the ability of the capital market to serve the real economy of the two countries.”
Mr. AlHasan Ashram, remarked that, “As we continue to advance the growth of the Saudi capital market, the MoU with the Shenzhen Stock Exchange is a significant step in this journey and will facilitate greater collaboration between Saudi Arabia and China. We have a shared commitment to advance the development of our capital markets, and I believe that this will benefit issuers and investors in both countries. We look forward to working closely with our partners at the Shenzhen Stock Exchange to leverage our collective strengths and expertise, creating new opportunities for growth and innovation in our capital markets.”
Next, the SZSE will continue to strengthen cooperation with overseas exchanges and market institutions in multiple aspects, tapping on the positioning advantage of the Guangdong-Hong Kong-Macao Greater Bay Area and under the guidance of the China Securities Regulatory Commission (CSRC). Through cross-listing of products, synergizing of mechanisms, inter-connectivity of infrastructure, and sharing of resources, SZSE will further enrich its cross-border product system, broaden cross-border investment and financing channels, encourage market participants to enhance their international competitiveness, and steadily push forward the high-level institutional opening up of China’s capital market, in order to create a market environment that encourages global long-term funds to invest and stay in the long run.