Dubai Financial Market and Shenzhen Stock Exchange Forge Strategic Partnership

In a significant move to bolster the financial landscapes of both the United Arab Emirates and China, Dubai Financial Market (DFM) and Shenzhen Stock Exchange (SZSE) have signed a Memorandum of Understanding (MoU). This agreement marks a pivotal step towards enhancing cross-border trading and investment opportunities, reflecting a shared commitment to fostering deeper collaboration between the two financial hubs.

The MoU was signed by Chen Feng, Director of International Cooperation Department at SZSE, and Afra Al Suwaidi, Chief Executive Officer of Dubai Central Securities Depository, a subsidiary of DFM. The signing ceremony, held on August 15, 2024, was witnessed by notable dignitaries including H.E. Sha Yan, Chairperson of SZSE, H.E. Ou Boqian, Consul General of the People's Republic of China in Dubai, and Hamed Ali, CEO of Dubai Financial Market & Nasdaq Dubai.

This strategic partnership aims to facilitate joint roadshows, seminars, research initiatives, and training programs to promote the development of capital markets in both countries. Additionally, the collaboration will explore cooperation on dual-listing, ETFs, mutual display of indices, and fixed-income products, subject to necessary regulatory approvals. This will enable a more informed and convenient access to secondary market activities in both geographies.

Furthermore, the partnership is set to act as a catalyst for the exchange of experience and insights in crucial areas such as market and product development, regulatory and ESG practices, and IT capacity building. This foundation is expected to foster deeper collaboration in the future, enhancing the capital markets' capacity to serve the real economies of both countries.

Hamed Ali, CEO of DFM and Nasdaq Dubai, commented on the MoU, stating, 'This MoU with Shenzhen Stock Exchange is a pivotal step in strengthening our cross-border ties, driving global investment opportunities, and enhancing market accessibility. By leveraging our combined strengths, we are not only reinforcing the ties between our financial ecosystems but also creating a robust platform for future growth and collaboration.'

The representative from SZSE remarked that in recent years, SZSE has steadfastly advanced high-standard two-way opening up. The signing of the MoU marks a key opportunity to conduct bilateral roadshows and promotional activities, enrich cross-border two-way investment and financing products and channels, deepen practical cooperation between China and the UAE, and strengthen the capital market’s capacity to serve the real economies of both countries.

For investors, this partnership signals a promising future for the DFM as it aligns itself with one of China's leading stock exchanges. The potential for increased investment opportunities, enhanced market accessibility, and the development of new financial products makes DFM an attractive proposition. However, given the nascent stage of this collaboration, a cautious approach is advisable. Investors should consider holding their positions and closely monitoring the developments arising from this strategic partnership.