BEIJING, April 30 (Xinhua) -- China's stock bourses have recently further strengthened cooperation with the overseas peers under the Belt and Road Initiative (BRI) to actively promote interconnection between China's capital market and the overseas investment and financing channels.
For example, on April 26, China's Shenzhen Stock Exchange (SZSE) and the Indonesia Stock Exchange jointly launched the first Indonesia-China capital market cooperation seminar in Jakarta, capital of Indonesia.
According to the SZSE, the two bourses have reached a consensus on the establishment of the "China-Indonesia SME Capital Market Service Initiative", and giving play to their advantages to provide small and medium-sized science and technology enterprises of the two countries with comprehensive services such as road shows, information exchange, incubation and cultivation, in an effort to assist in technology transfer and cooperation in scientific and technological achievements and further serve the construction of Belt and Road Initiative.
Earlier, on April 23, the SZSE signed a memorandum of understanding (MOU) with the Stock Exchange of Thailand (SET) to expand business opportunities for Thai and Chinese SMEs and broaden opportunities in investment as well as promote cross-border collaboration among the two countries.
Under this MOU's strategic framework "China-Thailand SME Capital Market Service Initiative", the SET and the SZSE will provide information on SMEs as well as financial markets of the two countries via online portal, and enhance "ChiNext-mai Alliance" network which aims to facilitate the communication and cooperation between companies listed on Market for Alternative Investment (mai) and the ChiNext Stock Market; to arrange business matchings and physical roadshows to promote Thai and Chinese securities' growth potential in both countries.
Apart from the SZSE, the Shanghai Stock Exchange (SSE) has also strengthened cooperation with the overseas peers to promote the capital market opening.
On April 22 when the China-Japan Capital Markets Forum was held in Shanghai, the SSE and Japan Exchange Group, Inc. (JPX) signed the ETF connectivity agreement, agreeing that they will establish the ETF connectivity mechanism for the markets in China and Japan.
Specifically, the Chinese and Japanese ETF providers will respectively establish cross-border ETFs through the existing QDII and QFII mechanisms, and invest all the fund assets or most of them in the representative ETFs listed in the other market.
On April 23, Huang Hongyuan, chairman of the SSE and Romeo Lacher, chairman of the Board of Directors of SIX Swiss Exchange (SIX) renewed the MoU which was initiated in June 2015 to cooperate in information sharing, personnel exchange and product development.
The updated MoU aimed to strengthen talks between the two exchanges and discuss the feasibility of propelling the listing cooperation of the two markets through depository receipts and other financial instruments.
The bourses' move was also encouraged by the Chinese regulator which has made efforts to promote the two-way opening of the capital market.
Yi Huiman, chairman of the China Securities Regulatory Commission (CSRC), said recently that China will strengthen cooperation with capital markets in various countries in a more active and pragmatic manner, and strive to build a normative, transparent, open, dynamic and resilient capital market.
Since 2018, the two-way opening of China's capital market has been accelerated. Promoting the Belt and Road construction requires the support of the capital market and the establishment of a cooperation mechanism between the capital markets of various countries, which is conducive to financial interconnection among the Belt and Road countries through the cooperation on capital markets, said Dong Dengxin, director of Finance and Securities Institute in Wuhan University of Science and Technology.
Latest comments