Deutsche Börse and the Shenzhen Stock Exchange signed a Memorandum of Understanding (MoU) in Frankfurt on Friday. The parties agreed on an extensive exchange of information about the internationalization of the financial markets in Germany and China.
In accordance with the MoU, the two stock exchange organizations are to start a comprehensive exchange of knowledge and opinions in many business areas, including, for example, joint product development and distribution, development of new trading functions and sale of trading data.
Deutsche Börse has been more active in China this year, organizing road shows and IPO conferences with the aim of promoting stock exchange listings for local companies. Deutsche Börse has established relationships to a variety of key institutions in the Chinese market over the past few years. Last year alone, seven companies from China were listed on the Frankfurt Stock Exchange for the first time. Deutsche Börse plans to open a representative office in Beijing.
Deutsche Börse Group is also pressing ahead with its activities in a number of Asian countries. It aims to expand its global participant network and to gain itself an even stronger position in the region as innovative provider of stock exchange infrastructure. This will provide Asian investors with access to European products and enable Asian stocks to be listed on European exchanges. Deutsche Börse also intends to continue its support with capital market expansion in Asian domestic markets.
About the Shenzhen Stock Exchange (SSE)
The Shenzhen Stock Exchange (SSE) is a mutual national stock exchange under the supervision of the China Regulatory Commission (CSRC). The market comprises a broad spectrum of participants, including 540 listed companies, 35 million registered investors and 177 exchange member companies. Buy and sell orders are matched in a fair, open and regulated market environment, and an automated system helps to achieve the best possible prices on a price/time priority basis. Since its foundation in 1990, the SSE has become a successful market with great competitive edge within China and with market capitalization of RMB 1 trillion (USD 122 billion). The SSE's daily trading volume is around 600,000 orders worth a total of USD 807 billion. The Chinese stock exchange is undergoing fundamental changes. The implementation of the new securities law and company law, innovation strategy and non-tradable share conversion reform have provided the Chinese market with immense opportunities. In accordance with the principle of "regulation, innovation, cultivation and service", the SSE will continue to focus on developing the Small and Medium Enterprises Board while also creating a top-quality market.
About Deutsche Börse Group
Deutsche Börse Group is one of the world’s leading service providers for the securities and derivatives industry with a product and service offering for issuers, investors, intermediaries and data vendors. The Group covers the entire process chain from trading, through clearing, to settlement and securities custody. Furthermore, Deutsche Börse offers market data, indices and analyses and is a service provider for the development and operation of IT systems. Deutsche Börse Group includes Deutsche Börse AG, a DAX company and the world's largest stock exchange organization with market capitalization of EUR 23 billion. The key markets within the Group are the Frankfurt Stock Exchange, one of Europe’s largest stock exchanges, and Eurex, one of the largest derivatives exchanges in the world.
