Shanghai Stock Exchange Signs MoU with Saudi Exchange Relying on Future Mutual Collaboration

On Sunday, the Shanghai Stock Exchange said it signed a Memorandum of Understanding (MOU) with the Saudi Exchange in Riyadh to lay the groundwork for future collaboration.

According to a statement issued by the Shanghai exchange on September 4, both exchanges will look into opportunities for collaboration in cross-listings, fintech, ESG (Environmental, Social, and Governance), and research.

"We are delighted to work with the Saudi Exchange," said Shanghai exchange general manager Cai Jianchun. "We look forward to jointly promoting product cooperation, including exchange-traded funds (ETFs), and deepening the connection between the two capital markets."

China and Saudi Arabia's stock exchanges had been in talks to allow ETFs to list on each other's bourses, three sources told Reuters last month, as the countries look to deepen financial ties amid warming diplomatic relations.

The Shanghai exchange had signed MOUs with 57 offshore institutions, and it will steadily promote diversified cooperation with overseas exchanges, the exchange said.