Abu Dhabi Global Market to establish Belt Road Exchange with Shanghai Stock Exchange

Abu Dhabi Global Market and Shanghai Stock Exchange agree to establish an international Belt and Road Exchange

ABU Dhabi Global Market, the international financial centre of Abu Dhabi, UAE (ADGM) and Shanghai Stock Exchange (SSE) have signed a memorandum of understanding (MoU) to establish an international “Belt and Road Exchange”.

The MoU was signed on April 23. A statement from ADGM said that the co-operation agreement harnesses Abu Dhabi’s strategic position along the Silk Road Economic Belt, ADGM’s strong regulatory regime, and SSE’s position as one of the largest and fastest growing global exchanges.

The “Belt and Road” Exchange aims to serve as a key international capital-raising platform supporting Chinese enterprises, foreign companies and global organisations to finance their investments, including along the Silk Road Economic Belt network. No date was given for the likely start of operations.

The statement added that the MoU marks the successful culmination of a close relationship developed between ADGM and SSE, including on-site visits and extensive engagement with key stakeholders in both markets that covered a wide spectrum of focus areas including regulatory requirements, legal frameworks, alongside investment requirements of potential local and global market participants.

“Shanghai Stock Exchange is pleased to enter into this landmark MoU with Abu Dhabi Global Market,” says Que Bo, deputy president of Shanghai Stock Exchange. "We will continue to work closely with ADGM and strategic partners to determine the operational model, product offerings and critical path to success in achieving the common objective of establishing a world class One Belt One Road Exchange.”

“We are pleased to support China’s “One Belt One Road” initiative and look forward to further strengthening our relationship with Shanghai Stock Exchange as the “Belt and Road” Exchange is developed within ADGM,” adds Richard Teng, chief executive officer, Financial Services Regulatory Authority of ADGM.

“We will work closely with our partner to better serve the ever-increasing capital and investment needs of both markets and our respective pools of international industry participants. As an international financial centre in Abu Dhabi, ADGM will continue to engage in and support ground-breaking initiatives that enhance the local financial services environment and those that lead to the acceleration of growth opportunities that bolster the economies of Abu Dhabi, the UAE and the broader MENA region.”

Since 2015, ADGM has entered into various discussions and significant cooperation arrangements with key authorities in China, including the People’s Bank of China, the China Banking Regulatory Commission, the China Securities Regulatory Commission, Shanghai Free Trade Zone, Qianhai Authority, the State Administration of Foreign Exchange and the financial communities.

These cooperative arrangements are focused on increasing cross-border activity, business expansion and regulatory collaboration between Abu Dhabi, the UAE and China.

Abu Dhabi Global Market (ADGM), an international financial centre (IFC) located in the capital city of the United Arab Emirates, opened for business in October 2015. Established by UAE Federal Decree as a broad-based financial centre, ADGM augments Abu Dhabi’s position as a global centre for business and finance and serves as a strategic link between the growing economies of the Middle East, Africa and South Asia and the rest of the world.

ADGM’s strategy is anchored by Abu Dhabi’s key finance industry segments, including private banking, wealth management, asset management and financial innovation. Comprising three independent authorities: ADGM Courts, the Financial Services Regulatory Authority and the Registration Authority, ADGM as IFC governs the Al Maryah Island which is a designated financial free zone. It enables registered financial institutions, companies and entities to operate, innovate and success within an international regulatory framework based on common law.

Date

2 May 2018

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