H.E. Khalifa Salem Al Mansouri –Acting Chief Executive of ADX received a high-level delegation from the Shanghai Stock Exchange (SSE) headed by Mr. Fu Hao, Deputy Director-General of Global Business Development Committee & Managing Director of Global Business Development Department of SSE. The visit aims to deepen cooperation and explore tangible opportunities with the Shanghai Stock Exchange (SSE), to strengthen partnership between the two stock markets.
The visit follows on from H.E. Khalifa Al Mansouri’s own visit to the Shanghai Stock Exchange (SSE) in July, which was aimed at identifying and exploring cooperation opportunities for investors and business for both exchanges.
Commenting on the importance of the visit, H.E. Khalifa Salem Al Mansouri – ADX Chief Executive said: “This partnership will be the driving force behind a bullish and buoyant trading environment, fully aligned with Abu Dhabi’s extensive economic diversification strategy. This comes at a time of resurgence for Abu Dhabi’s Exchange, which index up 3.7% since the beginning of this year. We have distributed more than AED 25 billion in cash dividends to 572,774 eligible investors – representing an increase of 6,95% compared to last year. Net institutional investment from the beginning of January till the end of August this year increased by 93% to reach to AED 2.6 billion in comparison to AED 1.4 billion for the same period in 2018. We are delighted that SSE have recognised the value of ADX as a leading and influential Exchange. Crucially, the deepening of ties between both ADX and SSE will boost the capabilities of both Exchanges and lead to increased global investor confidence in our developing and maturing economy and region.”
The visit focused on how to enhance mutual trust and promote cooperation between SSE and ADX, with many topics framing the comprehensive strategic partnership between the two Exchanges discussed. Firstly, the two teams started with a comparison of regulatory experience and insurance services. Following that, the team of experts from both Exchanges explored product cross-listing possibilities, outlining how this creates opportunities to attract capital while providing greater market visibility. Sharing clearing and settlement experience were also topics on the meeting agenda, as well as the creation of additional investment opportunities. Additionally, ADX and SSE are considering the possibility of developing a joint compilation index, as they evaluate the benefits brought by the various liquidity enhancement schemes.
H.E. Khalifa Al Mansouri continued: “The visit of Mr. Fu Hao presents a valuable opportunity for ADX to deepen cooperation between the two Exchanges, while strengthening its reputation with leading market peers and asserting Abu Dhabi’s positioning as an innovative, attractive market empowering the UAE’s economy. The entire ADX and SSE team have been preparing a detailed schedule of activities and a broad number of areas will be outlined”.
ADX presented to the SSE delegation the Environmental Social & Governance (ESG) disclosure guidelines that it recently created for listed companies. ADX is one of the first Exchange in the region to have created such comprehensive guidelines. The ESG attributes are providing positive opportunities for revenue growth potential through capital and market access. This initiative demonstrates the role of ADX as a pioneering hub for sustainable finance. This will motivate other international exchanges to follow the same steps of SSE, which highlights the importance of Abu Dhabi and its suitable/attractive environment for investment and doing business.
It is worth mentioning that the Shanghai Stock Exchange is the largest Stock Exchange in China and one of the leading Exchanges in the world.