Bovespa Signs Memorandum Of Understanding With Shanghai Stock Exchange - Governance And Index Development Spark Chinese Interest

This week, Brazil and China moved their respective capital markets one step closer. On March 1st, a delegation formed by representatives of the Shanghai Stock Exchange visited Bovespa (the Brazil’s Stock Exchange) to sign a Memorandum of Understanding (MoU) aiming at promoting broader cooperation, exchange of information and an ongoing relationship between both institutions.

The MoU with SSEmarks Bovespa’s first such agreement with any Asian market and envisages the possible exchange of employees and joint research on subjects of mutual interest. SSE is particularly interested in Bovespa’s experience in Corporate Governance, development of market indices and market surveillance.

Bovespa currently has similar cooperation agreements with 20 exchanges under the auspices of World Federation of Exchanges (WFE), which has 5 4 member exchanges around the globe, and under the Ibero-American Federation of Stock Exchanges, which is comprised of 19 exchanges. “The opportunity to strengthen ties with a mighty economy is important to Bovespa in this moment in which we are striving to promote the Brazilian market abroad,” affirmed Bovespa chairman, Raymundo Magliano Filho. We believe this MOU will build a bridge between two exchanges and help to promote the mutual prosperity and development of both market and economy, ” said SSE Chairman, Geng Liang.

Since mid-2003, the stock exchanges of both countries have shown interest in establishing closer ties and in July of last year a committee of eight representatives of the Chinese Securities Regulatory Commission (CSRC) and the Shanghai Stock Exchange visited Bovespa and participated in workshops on regulations, the Brazilian Clearing and Depository Corporation (CLBC) and the operation of the MegaBolsa Trading System.

The Shanghai Stock Exchange is the preeminent stock market in the People’s Republic of China. Founded in 1990, SSE has 837 listed companies with a total market value of US$ 314.32 billion, generating an annual trading volume of US$ 322.83 billion.

BOVESPA is the single stock exchange in Brazil. Founded in 1890, BOVESPA has 390 listed companies with a total market value of US$ 330 billion, generating an annual trading value of US$ 104 billion.