PSE strengthens tieup with Shenzhen bourse

MANILA, Philippines — The Philippine Stock Exchange Inc. (PSE) has strengthened its partnership with the Shenzhen Stock Exchange (SZSE), a move seen further boosting investment prospects for both Philippine and Chinese capital markets.

The two bourses signed a memorandum of understanding (MOU) “to strengthen communication and economic cooperation between the two bourses that can potentially help boost investment prospects for both the Philippine and Chinese capital markets.”

PSE president and CEO Ramon Monzon said the MOU strengthens the PSE’s partnership with the SZSE.

“The MOU broadens the strategic alliance and strengthens the relationship between PSE and SZSE. We will explore new areas to work on that will be beneficial for both exchanges,” Monzon said.

Under the agreement, both exchanges would promote investing in the counterparty’s stock market as well as share information on regulatory practices, market development and information technology.

Furthermore, the PSE and SZSE would also pursue initiatives on market connectivity through cross-border product development. Specific undertakings, if pursued, will be subject to the signing of definitive agreements and regulatory approvals.

The PSE-SZSE relations started in 2009 when both exchanges signed an agreement to undertake sharing of information on various market-related matters.

The MOU was reaffirmed in December 2017 when SZSE officials visited the PSE.

In 2018, officials from the Securities and Exchange Commission (SEC) as well as the PSE and its subsidiaries went to China to learn more about SZSE’s listing and disclosure regulations, market data products, and trading, surveillance, and clearing and depository systems, among others.

Both the PSE and SZSE started information and data sharing on their respective websites in February 2020.

“Among the main objectives of our collaboration with SZSE is to bring PSE up to par with neighboring stock exchanges. I believe that this partnership with one of the fastest growing markets in Asia and the world will help us realize this,” Monzon said.