Major stock exchanges in Zurich and Shanghai say they are stepping up their efforts at co-operation.
The SIX Swiss Exchange and the Shanghai Stock Exchange agreed to a memorandum of understanding (MoU) on Monday that calls for the two exchanges to accelerate their collaboration.
The agreement aims to formalize the regular exchange of information, they say “in order to improve understanding of each other’s market, promote business relations and strengthen regulatory standards.”
“The aim is to develop service offerings to the benefit of investors in both financial centers and to create attractive conditions for mutual admission of financial products,” the exchanges said.
The Swiss exchange is seeking “further internationalization of the Swiss securities market”, it said, in order to attract global investors and bolster trading volume.
The MOU builds on a free trade agreement that was reached between Switzerland and China in 2013, and a currency agreement between the Swiss National Bank (SNB) and the People’s Bank of China that was signed in 2014.
The Swiss exchange has offered trading in renminbi since 2012, it says, and some China-based bond issuers are currently traded in Switzerland.
The exchange also supports the efforts of the SNB to make Zurich a Swiss renminbi hub, it says.