The MICEX and the Shenzhen Stock Exchange (SSE) have signed a memorandum of mutual understanding aimed at promoting cooperation between the two exchanges in the area of information exchange. Both exchanges wish to contribute to the development of organized capital markets of Russia and China. The memorandum was signed today, following negotiations between the delegations of the two exchanges, headed by the CEO of the MICEX Stock Exchange Alexei Rybnikov and Chairman of the SSE Chen Dongzheng.
The memorandum is the foundation for the development of further cooperation between the two exchanges, which includes exchange of information and experience in implementing new exchange products, the development of technologies and the organization of exchange-based markets. According to the parties, this cooperation will contribute to the development of capital markets of both countries and the improvement of competitiveness of the exchanges in the context of globalization of world financial markets.
According to the MICEX President Alexander Potemkin, the memorandum is a new step in the development of relations between the MICEX the SSE. At present, the MICEX is actively developing the exchange-based stock and derivatives markets and modernizing its clearing services. The MICEX studies the most important results obtained in these areas by overseas exchanges. In this connection the MICEX is interested in the SSE’s experience in building an up-to-date national exchange infrastructure which must satisfy the interest of mass individual investors in operating on the stock market.
Chairman of the SSE Chen Dongzheng noted that the signing of the memorandum demonstrates the positive development of relations between the two exchanges and reflects the growing importance and intensity of business relations between China and Russia.
The Shenzhen Stock Exchange was established in 1990. In 1992 it launched trading in the electronic trading system. The Shenzhen Exchange is China’s second largest exchange. It specializes in small and medium-sized companies. The Exchange has two separate markets: one for trading in yuans and another for trading in Hon Kong dollars. In 2006 the volume of trading on the SSE amounted to 450 billion dollars (in 2007: 1.7 trillion dollars), the average daily trade volume reached 2.2 billion dollars (in 2007: 9.3 billion dollars), the number of listed companies reached 579 (in 2007: 646), while the number of IPOs amounted to 52 (in 2007: 73).
The MICEX Group is Russia’s largest integrated exchange, providing trading, clearing, settlement, depository and information services. The MICEX Group is comprised of the MICEX, the MICEX Stock Exchange, the National Mercantile Exchange, the MICEX Settlement House, the National Depository Center, the National Clearing Center, regional exchanges and regional settlement centers and some other organizations.
They serve over 1700 participants in the exchange-based market, which are leading Russian banks and brokerages located in Moscow and other large financial and industrial centers of Russia.
At present the MICEX is the largest exchange in Russia, the CIS and Eastern Europe. In 2006 the volume of transactions amounted to over 1.9 trillion dollars (in 2007: 2.7 trillion dollars).
This year, the average daily volume of exchange-based transactions has reached over 375 billion rubles (over 14.5 billion dollars). The MICEX Stock Exchange organizes daily trading in securities of over 700 Russian issuers, whose total capitalization is about 1 trillion dollars. The MICEX SE is among the world’s top 20 leading stock exchanges. It accounts for over 95% of the total exchange-based turnover for the Russian market and about 70% of the global volume of trading in Russian stock assets.
