RIYADH: Cooperation efforts between Saudi Arabia and China’s capital markets are on track to flourish thanks to an agreement signed by the Saudi Tadawul Group.
Inked with the Chinese Shenzhen Stock Exchange, the memorandum of understanding aims to enhance collaboration and explore new opportunities in several areas, including joint listing and financial technology, by leveraging the advantages of both parties, according to a statement.
This move aligns with the Shenzhen Stock Exchange’s plans to bolster partnerships with foreign exchanges to attract more long-term funds from outside China.
It also poses a crucial step in promoting the development of the Saudi capital market.
Moreover, fostering the growth of capital markets emerges as a shared objective for both nations as it is believed that issuers and investors from the joint countries will benefit from the deep cooperation between the capital markets, according to officials from Saudi Tadawul Group.
Under the terms of the agreement, both parties will work hand in hand to study the joint listing of exchange-traded funds and stocks.
In addition, they will also exchange experiences and mutual learning in various fields, including environmental, social, and governance, financial technology, investor assistance, and corporate incubation services. This will help in supporting the high-quality development of both markets.
Moreover, both sides will jointly research and promote cooperation in products such as indices, funds, and real estate investment trusts.
The two entities will also jointly build a cross-border capital service mechanism to promote the participation of market entities from both sides in cross-border investments and further advance the connectivity and integration of the capital markets between China and Saudi Arabia.
In September, the Saudi Tadawul Group and the Shanghai Stock Exchange signed an MoU to bolster cooperation and promote mutual development.
At the time, the agreement focused on dual listings of exchange-traded funds, initiatives related to investor relations and infrastructure development, as well as fintech, environmental and social practices.
There was also support for family businesses and small-medium enterprises, corporate governance, and data exchange and research, according to a statement released at the time.