The Dubai and Shenzhen Stock Exchanges are strengthening their cooperation for cross-border transactions and investments

Dubai Financial Market (DFM) and Shenzhen Stock Exchange (SZSE) recently signed a memorandum of understanding that reflects their joint commitment to support collaboration and promote cross-border trading and investment opportunities, reports marketsmedia.com.

The MoU, signed by Chen Feng, Director of International Cooperation Department of SZSE, and Afra Al Suwaidi, Executive Director of Dubai Central Securities Depository, a subsidiary of DFM, aims to further strengthen cross-border partnerships between the UAE and China, respectively the capital markets of both geographical areas.

The formalized collaboration between the two 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. The exchanges will cooperate on dual listings, ETFs, mutual listing of indices and fixed income products (subject to necessary regulatory approvals), facilitating more informed and convenient access to secondary market activities in both countries.

In addition, the strategic partnership will act as a catalyst for exchange of experience in areas such as market and product development, regulatory and ESG practices, IT capability development. This will create a solid foundation for promoting extended collaboration in the future.

The SZSE representative said that the signing of the memorandum of understanding marks an essential opportunity for conducting bilateral roadshows and promotional activities, enriching cross-border investment and financing products and channels, deepening practical cooperation between China and the UAE, and strengthening the capacity of the capital markets to support the economic reality in the two countries.

For his part, Hamed Ali, CEO of DFM and Nasdaq Dubai, said: "This memorandum of understanding with the Shenzhen Stock Exchange is an essential step in strengthening our cross-border ties, stimulating global investment opportunities and improving market accessibility. By leveraging our combined strengths, we not only strengthen the links between our financial ecosystems, but also pave the way for new opportunities for growth and innovation that will benefit investors and stakeholders in both regions."

Following the official signing of the MoU, Nasdaq Dubai hosted an event with industry experts, and discussions explored the dynamics between Dubai and China's capital markets, strategic cooperation and their prospects.