RIYADH: In an effort to bolster cooperation and promote mutual development, the Saudi Tadawul Group and the Shanghai Stock Exchange have signed a memorandum of understanding.
The agreement includes a focus on dual listings of exchange-traded funds, initiatives related to investor relations and infrastructure development, as well as fintech, environmental and social practices
There’s also support for family businesses and small-medium enterprises, corporate governance, and data exchange and research, according to a press release.
The agreement was signed by Khalid Abdullah Al-Hussan, CEO of STG, and Cai Jianchun, president of the SSE, during a visit by a high-level delegation from the SSE to Saudi Arabia.
Commenting on the agreement, Cai said they are pleased to announce the partnership with the Saudi side to explore potential opportunities in fintech, ESG, as well as other areas of mutual interest.
He added: “We look forward to working closely with the Saudi Tadawul Group to advance ETF and other product cooperation and further strengthen the cooperation between China and Saudi Capital Market.”
For his part, Al-Hussan said STG’s partnership with SSE is an important step towards advancing the growth of the Saudi capital market, in line with Vision 2030’s Financial Sector Development Program, which is working on shaping the Kingdom’s financial sector to promote income diversification, boost savings, and offer various financing and investment opportunities.
“This partnership will help facilitate greater connectivity between Saudi Arabia and China and encourage companies in both countries to consider cross-listing,” Al-Hussan said.
He added that the new partnership was a testament to their shared commitment to promote the development of capital markets for the benefit issuers and investors in both countries.
Saudi Arabia’s financial market is continuing to gain momentum with 13 more companies listed on Tadawul at the end of June compared to a year earlier.
According to the Capital Market Authority’s statistical bulletin issued on Monday, the number of firms on the Tadawul All Share Index stood at 228 at the end of the second quarter compared to 215 some 12 months earlier.
Meanwhile, the number of listed companies on the parallel market, Nomu, surged 100 percent to stand at 62 at the end of the second quarter of 2023 compared to 31 a year ago.