MOU Between Shenzhen Stock Exchange And Standard & Poor's

Shenzhen Stock Exchange signed the Understanding Memorandum on Cooperative Affairs with Standard & Poor's on June 24, including the index development, products listing and so on.

According to the Memorandum, Shenzhen Stock Exchange will authorize the Standard & Poor's to use a series of investable and base indexes prepared and released by the Shenzhen Stock Exchange for the purpose of meeting the rising demands of global investors. The Memorandum also provided that the Standard & Poor's would authorize the Shenzhen Stock Exchange to use its Standard Poor's 500 Indexes by the means of QDII system development and the trading of listed open-ended fund. Pursuant to the QDII system, the approved China domestic institution investors may invest in the oversea market within the certain quota. It is known by the reporter that the new QDII, upon the approval of the relevant regulatory institutions, will be issued and managed by the China Southern Fund Management Co, Ltd. one of China’s large fund management companies.

Both parties’ representatives including Zhou Ming, vice general manager of the Shenzhen Stock Exchange, and Alex Matturri, director of the Standard & Poor's Global Indexes Service Division, attended the ceremony for the signing of the Cooperation Memorandum.