Euronext and the Shenzhen Stock Exchange (SZSE) today announced the signing of a Memorandum of Understanding (MOU) to enhance the development of Exchange Traded Products (ETPs) in the Republic of China and the Euronext markets. The MOU is the starting point for collaboration on joint development, research, marketing, and specialized trading technology, as well as co-branding of indices and Exchange Traded Products.

The two exchanges have agreed to a series of engagements to further develop ETP trading. In order to facilitate Chinese residents’ effective and convenient investment in the European market and European investors in the Chinese market, Euronext and SZSE will actively promote cross listings of ETPs. The exchanges will also collaborate on index-related subjects, research papers or, when appropriate, on index compilation based on global or local markets. Both exchanges will also support each party’s licensing of market data in the other party’s market.

Euronext and SZSE will explore the possibility of further future cooperation on other relevant subjects, such as the development of capital raising facilities for small and medium enterprises, dual listing, the fixed income market and off-shore RMB products.

“Our partnership for the joint development of Exchange Traded Products and Indices in China and Europe is an exciting development.” said Lee Hodgkinson, Head of Markets and Global Sales at Euronext. “The Chinese financial markets are undergoing a remarkable transformation and we are privileged to be in a position to jointly develop innovative new products and create opportunities for trading and investment across both regions.” 

Liyang Jin, Executive Vice President of SZSE pointed out that, “The Chinese capital market is undergoing profound changes and reform. Besides improving basic equity products, the SZSE is also enriching the product line and building a more open market to provide more liquidity and risk management tools for domestic and foreign investors. The cooperation with Euronext will further facilitate cross-border investment and financing activities.”

About Euronext

Euronext is the primary exchange in the Euro zone with over 1 300 issuers worth €2.6 trillion in market capitalisation, an unmatched blue-chip franchise consisting of 20+ issuers in the EURO STOXX 50® benchmark and a strong, diverse domestic and international client base. Euronext operates regulated and transparent equity and derivatives markets. Its total product offering includes Equities, Exchange Traded Funds, Warrants & Certificates, Bonds, Derivatives, Commodities and Indices. Euronext also leverages its expertise in running markets by providing technology and managed services to third parties. Euronext operates regulated markets, Alternext and the Free Market; in addition it offers EnterNext, which facilitates SMEs’ access to capital markets.

About Shenzhen Stock Exchange

Shenzhen Stock Exchange (SZSE), established on 1st December, 1990, is one of the two stock exchanges in Chinese mainland. SZSE has 1660 listed companies with a total market capitalization of 3.4 trillion US dollars. Consisting of the Main Board, SME Board and ChiNext Market, SZSE has developed a multi-tiered capital market system serving issuers at different stages of growth. SZSE’s products include equities, mutual funds and bonds. The product lines include A-shares, B-shares, indices, mutual funds (including ETFs and LOFs), fixed income products (including SME collective bonds and asset-backed securities), and structured financial products. SZSE is a member of both the World Federation of Exchanges (WFE) and the Asian and Oceanian Stock Exchanges Federation (AOSEF). It is also an affiliate member of the International Organization of Securities Commissions (IOSCO).