London Stock Exchange Group (LSEG) and Shenzhen Stock Exchange (SZSE) have signed a Memorandum of Understanding (MoU) to facilitate greater cooperation and enhance the potential for effective capital formation.

The agreement reflects a mutual commitment to support the growth and development of capital markets in Shenzhen and London.

Julia Hoggett, CEO, London Stock Exchange plc, said:

“On behalf of LSEG, I am delighted to sign this MoU with Shenzhen Stock Exchange. The MoU is a testament to our commitment to collaborate across a broad range of areas to facilitate the further development and enrichment of global capital markets.”

SHA Yan, President and CEO, Shenzhen Stock Exchange, commented:

“The MoU signing between SZSE and LSEG is not only a progress summary of the close cooperation between the two exchanges, but also a starting point for higher-level cooperation. We hope that the two exchanges will continue to deepen pragmatic cooperation in multiple fields and enhance the ability of the capital market in serving the real economy of the two countries.”

Under the MoU, SZSE and LSEG will work together to enhance collaboration in areas such as market development, product innovation, and information exchange. The collaboration will cover issuance and listing of depository receipts, mutual information display of green securities, data partnerships and market research, and joint development of indices and ETF tracking.

Both parties will promote opportunities for the listing of depository receipts through Stock Connect, including companies contributing to the Green Economy. Furthermore, LSEG and SZSE will explore the development of richer data sets and indices to help investors better understand the Chinese markets.