DFM, Shenzen Bourse Sign MoU To Explore Investment Opportunities

Dubai Financial Market (DFM) and Shenzhen Stock Exchange (SZSE) have signed a Memorandum of Understanding (MoU) on Thursday, demonstrating a shared commitment to fostering collaboration and advancing cross-border trading and investment opportunities.

The MoU, signed by Chen Feng, Director of International Cooperation Department at SZSE, and Afra Al Suwaidi, CEO of Dubai Central Securities Depository, a subsidiary of DFM, aims to further enhance cross-border partnerships between the UAE and China, bolstering the capital markets landscape in both geographies.

The signing ceremony was witnessed by SSE Chairperson Sha Yan, Consul General of China in Dubai Ou Boqian, and Hamed Ali, CEO of Dubai Financial Market & Nasdaq Dubai.

The collaboration formalised between the exchanges will facilitate joint roadshows, seminars, research initiatives and training programs aimed at promoting the development of capital markets in both countries and cross-border financing for listed companies.

Both exchanges will explore cooperation on dual-listing, ETFs, mutual display of indices and fixed-income products, (subject to necessary regulatory approvals), facilitating a more informed and convenient access to secondary market activities in both countries.

Furthermore, the strategic partnership will act as a catalyst for the exchange of experience and insights in vital areas such as market and product development, regulatory and ESG practices, and IT capacity building. This will lay a solid foundation for fostering deeper collaboration in the future.

To Explore More Opportunities

SSE President Cai Jianchun said that they were pleased to establish partnership with DFM and announce their MoU signing to explore potential opportunities in cross-listing, indices, ETFs, ESG and other areas.

He also said that they were looking forward to work closely with DFM to advance product cooperation and further strengthen the cooperation between two markets.

“Next, under the guidance of our regulator, China Securities Regulatory Commission, SSE will further deepen the high-standard opening-up to the world and continue to explore a diversified cooperation mechanism with stock exchanges in the Middle East region, to strengthen bilateral cooperation, explore multilateral cooperation, continuously enrich and deepen cooperation format,” Jianchun added.

Chen Feng said that in recent years, SZSE has steadfastly advanced high-standard two-way opening up.

“The signing of the MoU marks a key opportunity to conduct bilateral roadshows and promotional activities, enrich cross-border two-way investment and financing products and channels, deepen practical cooperation between China and the UAE, and strengthen the capital market’s capacity to serve the real economies of both countries,” Feng added.

Hamed Ali said that this MoU is a pivotal step in strengthening our cross-border ties, driving global investment opportunities, and enhancing market accessibility.

“By leveraging our combined strengths, we are not only reinforcing the ties between our financial ecosystems but also paving the way for new avenues of growth and innovation that will benefit investors and stakeholders in both regions,” he said.

Following the formal signing of the MoU, a private event was hosted at Nasdaq Dubai featuring panel sessions with industry experts. The discussions explored the dynamics between Dubai and China’s capital markets, strategic cooperation and future prospects in the China-Dubai capital markets, and insights into the latest developments in China’s capital market regulations.

Launched in 1990, Shenzhen Stock Exchange is the eighth biggest market in terms of market capitalisation which is around $3.82 trillion as of July 2024.