Hong Kong Exchanges and Clearing Limited (HKEx) and Shanghai Stock Exchange (SSE) have met today to discuss the Closer Cooperation Agreement they signed in January of last year.
The agreement commits the two organisations to work together more closely towards the common goals of mutual prosperity and contributing to the greater development of China's economy.
"Through cooperation and exchanges with our friends at SSE, we can learn more about the behaviour and needs of Mainland investors and how we can further support the QDII (Qualified Domestic Institutional Investor) scheme," said HKEx Chairman Ronald Arculli. "We can also learn from each other about the market dynamics created by the growth and development of SSE and HKEx, and the latest market trends in the Mainland and Hong Kong.
"According to an old Chinese saying, a single tree cannot make a forest," Mr Arculli added. "Jointly with our Mainland counterparts, we can accelerate China's growth and financial development in a prudent manner."
As a result of recent discussions, HKEx's Listing Division and SSE's Company Management Department will establish a mechanism for regular exchanges, in order to more effectively regulate companies and securities listed in both Shanghai and Hong Kong and better protect shareholder interests. Views will be exchanged every two months, with the focus on operational issues, including information disclosure by listed issuers. The two organisations will take turns organising the meetings.
HKEx and SSE also agreed to strengthen exchanges and cooperation on information technology that supports business development. "The Shanghai and Hong Kong exchanges have their own technological advantages. There is ample room for the technology personnel of both organisations to share expertise, and explore possible ways to develop our respective technology support infrastructure to accommodate further and broader cooperation between the two markets," HKEx Chief Executive Charles Li said.
In addition, HKEx and SSE have agreed to seek further cooperation in product development and to hold a forum on listed structure products later later this year.
Since signing the cooperation agreement in January last year, HKEx and SSE have also started a market data collaboration programme, shared information on the development of Exchange Traded Funds and other products, and arranged for HKEx executives to train at SSE and vice versa.
HKEx believes its cooperation with SSE strengthens the two organisations' positions in today's rapidly changing financial market environment.