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The MOU was signed by ASX managing director and CEO, Mr Richard Humphry, and SSE President Zho Cong Jiu, in Shanghai earlier today.
Under the MOU, which follows an extensive series of visits and exploratory discussions, the two exchanges agreed to co-operate in exchange programs, carry out two-way staff secondments and hold senior executive-level meetings on a regular basis.
The two exchanges also agreed to enter into dialogue to negotiate more specific agreements of a more comprehensive nature in the near future. This included provision for conflict resolution and arbitration should any dispute arise.
Mr Humphry said the agreement marked the first significant step in what ASX hoped might lead to a close and comprehensive association with SSE, which is the PRC's leading equities market and among the most progressive institutions in the nation's rapidly emerging market economy.
"The timing of this agreement is particularly fitting, occurring as it does in the year of celebrations to mark the 30 th anniversary of Australia's historic and farsighted decision to recognise and establish diplomatic relations with the PRC," he said.
"This is a vigorous leap into the future for both of us, and is a particularly auspicious event given the rapid rise of PRC and the SSE following China's entry into the WTO" The two exchanges are very well matched. SSE is the PRC's leading equities market, boasting as of June this year 675 listed companies with a market capitalisation of US$374.2 billion..2
At the end of last year China was Australia's fourth largest export destination (6.2%) and Australia's third-largest source of imports (8.8%). China was also Australia's third-largest merchandise trade partner last year.
"The SSE's rise to prominence mirrors that of China itself, and it is to be hoped that the SSE will follow the example of the national economy in terms of developing links with its Australian counterpart," Mr Humphry said.
