(Yicai) Sept. 5 -- The Shanghai Stock Exchange is joining forces with the Saudi Arabian Tadawul Stock Exchange to explore cross-listings and form closer ties on financial technology, environmental, social and governance practices as well as data exchange and research.

The two exchanges will work on facilitating corporate listings, dual listings of exchange-traded funds and knowledge sharing in investor relations, the Shanghai bourse said yesterday, citing the memorandum of understanding signed by the two parties on Sept. 3.

The Shanghai Stock Exchange is proud to form a partnership with the Saudi Tadawul Stock Exchange, Cai Jianchun, general manager of the Shanghai bourse, said at the signing ceremony.

The Shanghai bourse looks forward to working with its Middle Eastern counterpart to partner on more products and to bring communication and cooperation between the two exchanges closer, it said.

This is an important step in promoting the growth of the Saudi capital market and is in line with the development plan for the financial sector in Saudi Arabia’s Vision 2030, said Khalid Abdullah Al-Hussan, chief executive officer of the exchange’s operator Saudi Tadawul Group.

The partnership between the two sides will help foster closer ties between Saudi Arabia and China, encourage companies from both countries to consider cross-listings and reveal Saudi Arabia’s commitment to promoting the development of its capital market, benefiting issuers and investors in both countries, Al-Hussan said.

The Shanghai stock exchange is co-operating with 57 foreign organizations which explore ways to serve the capital markets on both sides.

Editor: Kim Taylor