Shanghai exchange links to Saudi

The Shanghai Stock Exchange signed a memorandum of understanding with the Saudi Exchange yesterday to explore cooperation opportunities in cross-listing, financial technology, environment, social and governance, data exchange and research.

This is expected to promote diversity and inclusiveness in the two markets, as well as facilitate the listing of companies and the dual-listing of exchange-traded funds.

Khalid Abdullah Al-Hussan, chief executive of the Saudi Exchange, said the partnership with the Shanghai Stock Exchange is an important step in promoting the growth of the Saudi capital market, helping to foster ties between Saudi Arabia and China and encouraging companies from both countries to consider cross-listing, which will be beneficial to both issuers and investors in the two countries.

Cai Jianchun, general manager of the Shanghai Stock Exchange, said they will work together to explore financial technology, ESG and so on, and look forward to advancing cooperation with the Saudi Exchange on products including ETFs and deepening the cooperation between the two capital markets.

The Shanghai Stock Exchange has signed cooperation agreements and carried out exchanges and cooperation with 57 overseas organizations.

Hong Kong Exchanges and Clearing (0388) also signed an MoU with the Saudi Tadawul Group, the stock exchange operator in Saudi Arabia, in February to work together on many areas of interest.