Hong Kong Exchanges and Clearing Limited (HKEx) and Shanghai Stock Exchange (SSE) today (Wednesday) signed a Closer Cooperation Agreement which commits the two exchanges to work together more closely towards the common goals of meeting the domestic and international fund-raising needs of Chinese enterprises for their continued development, and contributing to the greater development of China's economy.
HKEx and SSE have enjoyed a long-standing working relationship and have cooperated over the years in a number of different areas, including recently on a market data collaboration programme. Today's agreement will be beneficial to the two exchanges' continued cooperation, particularly in information sharing, product development and personnel training.
At the signing ceremony, HKEx Chairman Ronald Arculli said that HKEx hoped to contribute to the common goals by sharing its experience in implementing international standards and best practices, and what it has learned from its exposure to global investors and issuers.
"In the long term, the closer cooperation will help eliminate potential regulatory and operational arbitrage by aligning rules and regulations as well as the operations of markets and exchanges in the Mainland and Hong Kong. We also see room for closer cooperation in product expansion not only on our markets but also on the Shanghai Stock Exchange and other Mainland exchanges - such as a wider range of securities, including ETFs (Exchange Traded Funds), CBBCs (Callable Bull/Bear Contracts) and DWs (derivative warrants), as well as derivatives like futures and options based on A shares. That will ultimately benefit a wider range of market participants," Mr Arculli said.
"We also look forward to the opportunity to learn more from the Shanghai Stock Exchange about the needs of Mainland investors, and providing enhanced support to the QDII (Qualified Domestic Institutional Investor) scheme," Mr Arculli added.
The Closer Cooperation Agreement was signed by SSE President Zhang Yujun and HKEx Chief Executive Paul Chow in Shanghai. Other officials attending the ceremony included Shanghai Vice Mayor Tu Guangshao, SSE Chairman Geng Liang and HKEx Chairman Ronald Arculli.