The MOU was signed by ASX Chairman Mr Maurice Newman AM, and SSE Chairman Dongzheng Chen, in Shenzhen earlier today.
Under the MOU, the two exchanges agree to co-operate in exchange programs, keep each other informed of major policy changes in the markets, host secondment of personnel and exchange information about each other's markets. It is hoped that in time this could lead to further co-operation in areas where there is a clear mutual benefit for both exchanges.
Mr Newman said this agreement followed on from the MOU agreement signed with the Shanghai Exchange on 27 September 2002. He said that he hoped this would lead to a close and productive association with SSE, a leading equities market in the People's Republic of China.
"We are delighted that this agreement will have an immediate outcome; that is secondments of staff from Shenzhen to ASX at the end of this month. The opportunity for us to exchange information in this way is important and valuable for both parties in an increasingly globalised industry."
"This is firm foundation for the future development of both of us, and is a further recognition of the rapid rise of PRC and the development of its financial markets following China's entry into the WTO."
Shenzhen Stock Exchange is the PRC's second largest equities market after the Shanghai Stock Exchange. At 31 December 2002, Shenzhen had 508 listed companies, with a total market capitalisation of 502 billion Yuan (approx US$61 billion.)
The PRC is Australia' s 4th largest export destination (7%), 3rd largest import source (10.1%) and Australia's 3rd largest merchandise trade partner (8.6%).
