DUBAI - In a significant move to strengthen financial cooperation, the Dubai Financial Market (DFM), Nasdaq Dubai, and the Shanghai Stock Exchange (SSE (LON:SSE)) have signed a Memorandum of Understanding (MoU) today. This strategic alliance is set to enhance Dubai-China capital market relations by focusing on the joint development of various financial instruments, including Indexes and Exchange-Traded Funds (ETFs), with particular emphasis on Environmental, Social, and Governance (ESG) products.
The agreement between the exchanges aims to expand market reach by making it easier for companies to access each other's markets. Hamed Ali of DFM highlighted the critical role global partnerships like this one play in exploring new opportunities. He noted that collaborations are essential for growth in today's interconnected financial landscape.
Cai Jianchun of SSE echoed this sentiment, emphasizing a commitment to boosting product collaboration and strengthening relationships within the Middle East. This initiative aligns with the China Securities Regulatory Commission’s policies and is part of the SSE's broader strategy to open up its markets to international investors through diversified cooperation mechanisms.
The partnership is expected to promote efficiency and transparency in both markets while also fostering knowledge exchange. The development of ESG products is particularly noteworthy as investors globally are increasingly seeking sustainable investment opportunities that align with their values.
By creating joint Indexes and ETFs, the MoU facilitates improved service access for issuers and investors alike, potentially leading to increased liquidity and more investment options across both regions. This collaboration marks a significant step towards greater integration of the Middle Eastern and Chinese capital markets.
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