On October 16, 2018, the Shanghai Stock Exchange (SSE) and Euronext successfully held the MOU Signing Ceremony between SSE and Euronext and also the Pan-European Market Promotion Campaign at the SSE trading floor. SSE Chairman Huang Hongyuan and Euronext CEO Stephane Boujnah signed the memorandum on behalf of the two sides, marking an important step to further deepen the cooperative relationship and promote the exchange of the capital markets between the two regions. Making remarks at the event were Boujnah, SSE Vice President Liu Shaotong, and Axel Cruau, Consul General of the French Consulate General in Shanghai. Also attending and witnessing the event were David Karmouni, Regional Financial Counselor of the Department of Economic Affairs at the French Embassy in China, and nearly 30 representatives of the financial institutions from home and abroad.
One of the highlights of the memorandum signed by the two exchanges is that both sides will jointly promote the development of the CAC40 ETF products, which will help to enrich the supply of cross-border ETF products on the SSE and further expand and deepen the cooperation between the two exchanges.
Liu said in his speech that Euronext is Europe's leading all-round exchange, and its products and business scope cover the major markets in the world. The launch of the ETF products developed on the basis of the Euronext flagship index CAC40 on the SSE will be conducive to the establishment of closer cooperation between the two exchanges, while facilitating the formation of a diversified product system on the SSE and promoting the opening up of China's capital market.
Boujnah said that Euronext has been active in exploring the Chinese market, and the signing of the memorandum with the SSE will further expand the business of Euronext in China while deepening the partnership of the two exchanges. The CAC40 ETF marks the beginning of substantive cooperation between the two exchanges, and Euronext expects more opportunities for exchanging and cooperating with the SSE in the future.
Cruau said that currently the CAC40 index is the best-received benchmark index in the French stock market, and it is also one of the important reference indicators for foreign investors to enter the European market. In 30 years since its launch, the CAC index system has been continuously enriched to include eight index products such as CAC Next 20 and CAC Mid 60 at present, covering all listed companies in France. The signing of the memorandum between the SSE and the Euronext is an important move for the further opening up of China's capital market. Through the CAC40 ETF products, the investors in China will be able to participate more conveniently in the French securities market.
As an important part of China's capital market, the SSE will further explore communication and cooperation with overseas exchanges, set up a long-term communication mechanism, continue to expand the influence of the SSE in the international market, strive to give full play to the role of the financial market infrastructure as a bridge, promote the new channels for cooperation between the fund companies and member units and the overseas exchanges, and advance the internationalization of China's capital market.