Following a similar agreement signed between the Abu Dhabi Securities Exchange (ADX) and the New York Stock Exchange (NYSE) earlier in November 2023, the Dubai Financial Market (DFM), NASDAQ Dubai and the Shanghai Stock Exchange (SSE) have signed an MoU to jointly develop products including ESG and sustainability-linked products.
The latest agreement is envisioned to strengthen financial ties between the capital markets of Dubai and China.
In addition to developing new sustainable products, the MoU with the SSE aims to facilitate knowledge-sharing among the exchanges and enhance efficiency and transparency in both markets. It will also facilitate the joint product development of indices and exchange-traded funds (ETFs).
“The partnership with the SSE marks a significant step in strengthening our international ties and fostering cooperation in key areas of our capital markets development. This partnership opens doors to exploring new opportunities and expanding our market reach,” Hamed Ali, CEO of DFM and NASDAQ Dubai, commented.
According to Cai Jianchun, the president of the SSE, the exchange, guided by the China Securities Regulatory Commission, will further explore deepening its opening-up efforts through a diversified cooperation mechanism with stock exchanges in the Middle East. These efforts are envisioned to strengthen multilateral cooperation.
The cross-jurisdictional agreement follows the announcement of a similar MoU signed between the ADX and the NYSE earlier this month, which also included a component to collaborate on sustainability-related initiatives.
The agreement with the NYSE will seek to promote dual listing of companies on both exchanges as well as the development of ETFs, data and index products.
According to Abdulla Salem Alnuaimi, CEO of the ADX, the collaboration with the NYSE will foster greater connectivity between issuers and investors and provide companies with greater visibility and access to a larger pool of investors. It will also offer investors the opportunity to participate in the growth of companies from diverse geographic regions.