SSE, KRX Sign MOU on Closer Cooperation

On May 11, 2021, the Shanghai Stock Exchange (SSE) and the Korea Exchange (KRX) signed a memorandum of understanding on closer cooperation (the MOU for short) by video. SSE President Cai Jianchun and KRX Chairman Sohn Byungdoo signed the MOU on behalf of the two exchanges. According to the MOU, the SSE and the KRX will discuss the establishment of an ETF connectivity mechanism between China and South Korea and strengthening cooperation in the fields of index and bond markets.

SSE President Cai Jianchun (left), signs a memorandum of understanding on closer cooperation between the SSE and the KRX with KRX Chairman Sohn Byungdoo (right).

In 2003, the SSE and the KRX signed a memorandum of understanding for cooperation. The two exchanges have maintained good relations, with long-term communication and cooperation in the areas of mutual visits, personnel exchanges and information exchange. In recent years, the economic and trade cooperation between the two countries has continued to develop, and China has become the largest trade partner of South Korea. Next year will mark the 30th anniversary of the establishment of diplomatic relations between China and South Korea, and the bilateral relationship will face important opportunities for further development. In this context, the MOU signed between the SSE and the KRX will further cement the relationship between the two exchanges, promote the upgrading of the cooperation between the capital markets in China and South Korea, and fuel the coordinated development of the regional financial market. It is worth mentioning that the ETF market cooperation will, by referring to the mature international ETF connectivity mode, actively launch the ETF products with advantages in each other’s market, improve the product system for opening-up, meet the growing cross-border investment demand in China and South Korea, and drive the in-depth cooperation between the two capital markets. Both sides also agreed to carry out research in the fields of joint development of relevant indexes, facilitation of cross-border investment and bond market cooperation, and explore new paths for capital market cooperation between China and South Korea.

Under the unified deployment and guidance of the China Securities Regulatory Commission, the SSE has been committed to strengthening the connectivity between domestic and overseas markets and steadily promoting the institutional opening-up of the capital market in recent years. Going forward, the SSE will continue to propel communication and cooperation with overseas exchanges, make good use of the existing mature connectivity mechanisms, explore innovative models of cross-border capital market cooperation, and promote the two-way opening-up of China's capital market at high standards.