According to an agreement on closer cooperation between the Shanghai Stock Exchange (SSE) and Hong Kong Exchanges and Clearing (HKEx) signed in January 2009, the management of the two organisations will meet on a regular basis to promote continued close cooperation to further mutual development and prosperity and contribute to the country's economy.
The management of the SSE and HKEx met in Hong Kong on 21 January 2010. The following joint statement was issued after the meeting.
1. |
The management of the SSE and HKEx exchanged views
and discussed their experiences regarding information sharing and
cooperation in regulating companies and securities listed in both
markets, market infrastructure development, product development,
information service development, personnel exchanges, and so forth. |
2. |
Both sides agreed to strengthen information sharing
and cooperation in regulating companies and securities listed in both
markets. With an increase in A+H share listings, as well as the
development of Exchange Traded Funds (ETFs) on A shares and ETFs on |
3. |
Both sides agreed to strengthen exchanges and
cooperation regarding technology that supports business development.
Information technology development, particularly the development of
trading and information dissemination systems, is crucial to the stock
exchange business. Exchanges and cooperation on technology issues
between the two organisations can deepen mutual understanding of the
merits of each market's infrastructure and help further the markets'
business development. The Shanghai and Hong Kong exchanges have
their own technological advantages. The SSE's new generation
trading system has cutting edge technology and advanced capacity, while
HKEx's systems support trading, clearing and information dissemination
for a variety of products. There is ample room for the technology
personnel of both organisations to share expertise, and explore possible
ways to develop the respective technology support infrastructure to
accommodate further and broader cooperation between the two markets. |
4. |
Both sides agreed to strengthen cooperation in
respect of the development of products. ETFs have become the
starting point of the two organisations' cooperation on product
development. At present, several Mainland fund management companies are
actively making preparations for the issue of ETFs related to Hong Kong
stocks. It is hoped future cooperation on ETFs will be extended on
a gradual basis to the development of ETFs on bonds and gold, as well as
cross listings. Besides ETFs, the two organisations may seek
further cooperation in products such as securitised assets, warrants,
Callable Bull/Bear Contracts and options. The two organisations
jointly participated in a forum on ETF market development last year and
agreed to hold a forum in similar format on listed structured products
later this year. |
5. |
Both organisations agreed to deepen cooperation in
the development of information products. For example, cooperation
in compiling an index comprising securities listed in Shanghai and Hong
Kong may be explored to increase the Shanghai and Hong Kong stock
exchanges' influence in the global market. |
6. |
Both organisations support continued exchanges and training involving their personnel. The management of the two organisations agreed to meet twice a year to review the progress of exchanges and training, and work out plans for the next year's exchanges and training. The two organisations will take turns organising the meeting. Training may take the form of meetings during which each side will be briefed on the other side's market development, or short educational visits to each other's offices. Last year, the two organisations arranged for their executives to train in each other's related departments, and agreed to continue the activities. |
* The original is in Chinese. This is an English translation.