On September 3, 2023, the Shanghai Stock Exchange (SSE) and the Saudi Exchange Group (SEG) inked a Memorandum of Cooperation in the Saudi capital, Riyadh, laying the groundwork for collaboration and development between the two exchanges. Mr. Cai Jianchun, General Manager of the Shanghai Stock Exchange, and Mr. Khalid Abdullah Al-Hussan, CEO of the Saudi Exchange Group, signed the Memorandum of Cooperation on behalf of their respective institutions.
According to the Memorandum of Cooperation, both exchanges will explore opportunities for collaboration in cross-listings, financial technology (FinTech), environmental, social, and governance (ESG) initiatives, data exchange, and research, with the aim of fostering diversification and inclusivity in both markets. While actively promoting the development of market infrastructure in both regions, the two exchanges will also work towards facilitating corporate listings, dual listings for ETFs, and knowledge sharing in investor relations.
Mr. Cai Jianchun, General Manager of the Shanghai Stock Exchange, expressed his enthusiasm for the collaboration, stating, “We are delighted to establish a partnership with the Saudi Exchange Group to jointly explore potential cooperation opportunities in financial technology, ESG, and other areas of mutual interest. We look forward to advancing product collaborations, including ETFs, and deepening the connectivity and cooperation between the two capital markets.”
Khalid Abdullah Al-Hussan, CEO of the Saudi Exchange Group, remarked, “Our collaboration with the Shanghai Stock Exchange marks a significant step towards boosting the growth of the Saudi capital market in line with the Saudi Vision 2030’s financial sector development plan. This partnership will help foster closer ties between Saudi Arabia and China, encourage companies from both countries to consider cross-listings, and underscores our commitment to promoting capital market development. We believe this will be beneficial for issuers and investors in both nations.”
To date, the Shanghai Stock Exchange has signed Memoranda of Cooperation with 57 foreign institutions and has engaged in extensive exchange and cooperation activities within the framework of these memoranda, exploring practical ways to serve the capital markets of both parties. Going forward, the Shanghai Stock Exchange, under the overall coordination of the China Securities Regulatory Commission, will continue to expand the scope of international exchanges, steadily advance multifaceted cooperation with foreign exchanges, and steadfastly deepen reforms and opening-up in the capital market, accelerating the establishment of a high-level institutionalized two-way opening pattern.