Saudi Arabia and China's stock exchanges announced a cooperation agreement on Monday as Beijing seeks greater influence in the Gulf.
The Saudi Tadawul Group, which owns the Saudi stock exchange Tadawul, and the Shanghai Stock Exchange signed a memorandum of understanding to “promote mutual development and cooperation.” They will explore ways to work together on cross-listing stocks, fintech, exchange-traded funds (ETFs) and data exchanges, among other things, the Shanghai Stock Exchange said in a statement.
“This partnership will help facilitate greater connectivity between Saudi Arabia and China and encourage companies in both countries to consider cross-listing,” said Saudi Tadawul Group CEO Khalid Abdullah Al-Hussan.
Reuters reported last month that Saudi Arabia and China were in talks to allow ETFs to list on on each other’s exchanges. ETFs consist of pooled investments that are similar to mutual funds, but unlike the latter, can be traded on exchanges like normal stocks.
