Shenzhen, Amsterdam, Brussels, Lisbon, London and Paris - 19 May 2015 – Euronext and the Shenzhen Stock Exchange (SZSE) today announced the signing of a Memorandum of Understanding (MOU) to enhance the development of Exchange Traded Products (ETPs) in the Republic of China and the Euronext markets. The MOU is the starting point for collaboration on joint development, research, marketing and specialized trading technology, as well as co-branding of indices and Exchange Traded Products.
The two exchanges have agreed to work closely together to develop ETP trading further. In order to facilitate Chinese residents’ effective and convenient investment in the European market, and European investors in the Chinese market, Euronext and SZSE will collaborate to identify ways to promote cross listings of ETPs where such cross listings are permitted by applicable law or regulation. The exchanges will also collaborate on index-related subjects, research papers or, when appropriate, on index compilation based on global or local markets. Both exchanges will also support each party’s licensing of market data in the other party’s market.
Euronext and SZSE will explore the possibility of further future cooperation on other relevant subjects, such as the development of capital raising facilities for small and medium enterprises, dual listing, the fixed income market and off-shore RMB products.
“Our partnership for the joint development of Exchange Traded Products and Indices in China and Europe is an exciting development,” said Lee Hodgkinson, Head of Markets and Global Sales at Euronext. “The Chinese financial markets are undergoing a remarkable transformation and we are privileged to be in a position to jointly develop innovative new products and create opportunities for trading and investment across both regions.”
Liyang Jin, Executive Vice President of SZSE pointed out that, “The Chinese capital market is undergoing profound changes and reform. Besides improving basic equity products, the SZSE is also enriching the product line and building a more open market to provide more liquidity and risk management tools for domestic and foreign investors. The cooperation with Euronext will further facilitate cross-border investment and financing activities.”