Shanghai, Saudi Exchanges to Cooperate on Cross-Listings

The two exchanges will explore cross-listings of companies as well as ETFs, and also collaborate in areas such as fintech and ESG.

The SSE (Shanghai Stock Exchange) has signed an agreement with Saudi Tadawul Group, which owns the Saudi Exchange, to collaborate on cross-listings, fintech, ESG, data exchange and research.

“The collaboration will help to promote diversity and inclusion in both markets,” the SSE said in a statement. “The two exchanges will also work to promote corporate listings, ETF dual listings, and knowledge sharing in investor relations.”

Tadawul Group CEO Khalid Abdullah Al-Hussan said the partnership with SSE will help promote closer ties between Saudi Arabia and China, encourage companies in both countries to consider cross-listings, and demonstrate Saudi Arabia’s determination to promote the development of the capital markets in both countries.

In February this year, HKEX (Hong Kong Exchanges and Clearing) also reached an agreement with Tadawul Group to explore cooperation opportunities in fintech, ESG and cross listings. Tadawul Group is reported to also be in talks with SZSE (Shenzhen Stock Exchange) on an ETF Connect project.

Ties between China and Saudi Arabia have warmed since a visit by President Xi Jinping in December, prompting a series of deals involving technology, energy and infrastructure. Saudi Arabia has also agreed to settle trade payments with China in the yuan.

Saudi Arabia has the world’s seventh-largest stock market, with a total market cap of USD 3 trillion. China is the second largest, with a total market cap of around USD 9.9 trillion.