SZSE Fully Deepens Cooperation With Capital Markets in South Asia

SZSE Fully Deepens Cooperation With Capital Markets in South Asia

The FINANCIAL -- On June 15, 2018, the CSACF Financial Cooperation and Development Strategy Seminar was held in Kunming.

Shenzhen Stock Exchange (hereinafter as “SZSE”) was invited to attend and gave a keynote speech. SZSE’s representative introduced that under the unified leadership of China Securities Regulatory Commission (hereinafter as “CSRC”), SZSE will focus on developing the in-depth cooperation with the capital markets in South Asia, to make better use of the capital markets in serving the Belt and Road construction.

In terms of strategic investment, in May 2018, SZSE led a Chinese consortium to acquire 25% stake in the Dhaka Stock Exchange of Bangladesh. Both parties are actively promoting cooperation in key areas such as trading technology, market cultivation and product development to achieve full integration and development of the capital markets and real economies of both countries. In December 2016, a Chinese consortium, SZSE included, acquired 40% stake in Pakistan Stock Exchange, which has laid a solid foundation for deepening the financial cooperation between China and Pakistan and promoting the real economies of both countries, according to SZSE.

In terms of capital cooperation, SZSE has created a cross-border investing and financing information service platform “V-next”. It precisely matches enterprises with financing needs with investment institutions with preferences to provide economical, efficient and transparent investing and financing connection channels. In April and June of 2017, SZSE held online road shows and offline communication events for 16 Indian and Indian and Pakistani corporate projects with local characteristics to create a cross-border investing and financing ecosystem, facilitate cross-border information exchange, and promote cross-border capital formation.

In terms of exchange and cooperation, in June 2017 and May 2018, SZSE organized the Pakistan Capital Market Seminar in Shanghai and the Sino-Bangladesh Capital Market Cooperation Seminar in Dhaka, Bangladesh to build consensus among all sides and created a favorable atmosphere to actively promote multi-tiered exchanges and cooperation with capital markets in Pakistan and Bangladesh, according to SZSE.

After nearly 30 years of intensive exploration and practice, SZSE has accumulated rich experience in promoting technological innovation in emerging markets, serving SMEs, market development and preventing and controlling market risks and was widely recognized by the international industry. IOSCO (short for “International Organization of Securities Commissions”) and WFE (short for “World Federation of Exchanges”) also paid high attention to and recognized our market construction experience in SME Board and ChiNext Board.

Next, SZSE will continue to deepen its cooperation with the capital markets in South Asia with the aim to build a world-leading innovation capital formation center.

Together with domestic and foreign market participants, we will focus our efforts on financial infrastructure, cross-border information services and cross-border product innovation, in addition to market capacity enhancement. First, we will strengthen in-depth cooperation with the South Asian capital markets on securities market infrastructure, improve technical support and the service system, and explore and push forward the full connection and sharing of technologies, markets and facilities. Second, we will give full play to the cross-border investing and financing information service platform “V-next” to share resource channels and build cooperative networks so as to provide full services, including financing project presentations and roadshows, project evaluations and corporate training, to the innovative enterprises with local characteristics in South Asian countries and regions, and to create a better cross-border financial services ecosystem.

Third, we will enrich cross-border investing and financing tools and products to facilitate the panda bond issue, Belt and Road bond issue and cross-border asset securitization of more sovereign governments and enterprises, apart from advancing the development and promotion of cross-border indices and fund products to meet the diversified asset allocation needs of investors. Fourth, we will strengthen experience exchange and sharing to enhance the capacity of the capital markets in South Asian regions to serve the real economies.