Shanghai Stock Exchange, Deutsche Börse and CEINEX signed a memorandum of understanding on special cooperation on depository receipts under the stock connect

On 6 November 6 2024, the Shanghai Stock Exchange (SSE), Deutsche Börse Group (DBG) and China Europe International Exchange (CEINEX) signed a memorandum of understanding on special cooperation on depository receipts under the stock connect. This is an important measure for the SSE to actively promote the high-level institutional two-way opening up of the capital market and to further deepen the cooperative relationship between the Chinese and German securities markets. It also marks that the cooperation in the development of products of depository receipts under the stock connect, information exchange and personnel exchange between the SSE and DBG has entered a new stage.

The SSE has maintained good cooperation and exchange with the DBG for a long time. In 2015, with the support and recognition of the regulatory authorities and governments of China and Germany, the SSE, China Financial Futures Exchange and DBG jointly established the CEINEX in Frankfurt, committed to providing more convenient financial services for Chinese and European companies and international investors. In 2022, the China Securities Regulatory Commission (CSRC) optimized the depositary receipts under the stock connect scheme between domestic and overseas stock exchanges and included the German market in the scope of overseas markets. In 2023, the 3rd China-Germany High-Level Financial Dialogue included further supporting depository receipts under the stock connect in the list of consensus. At present, the rules, business, technology and market for depository receipts under the stock connect between the SSE and DBG have been ready. According to the memorandum of understanding, the SSE and DBG will continue to promote more extensive and close cooperation, give full play to the advantages of the CEINEX in linking the two markets, and jointly provide services for the issuance and listing of Chinese depositary receipts (CDR) and global depositary receipts (GDR) under the stock connect.

In recent years, under the unified deployment and guidance of the CSRC, the SSE has been committed to deepening the interconnectivity of domestic and overseas securities markets and steadily promoting the institutional opening up of the capital market. In the future, the SSE will continue to strengthen communication and cooperation with overseas exchanges, give full play to the positive role of existing mature connectivity mechanisms, explore innovative models of cooperation between domestic and overseas capital markets, and effectively promote the high-quality two-way opening up of China’s capital market.