Malaysia partners China's Shenzhen Stock Exchange to broaden investment opportunities

Bursa Malaysia said in a statement that both parties welcomed the collaboration through a virtual signing ceremony held in the presence of Datuk Shireen Ann Zaharah Muhiudeen, chairperson of Bursa Malaysia and Wang Jianjun, chairman of SZSE.

Under the MoU, both exchanges will collaborate on several areas of mutual interest, aiming to strengthen the ties and promote the flow of investment between the two countries.

Among others, it will include the facilitation to display mutual benchmark indices in the respective markets and joint promotion of the indices and their constituents to enhance the visibility and profile of both the Malaysian and Chinese markets, according to the statement.

"This is a significant milestone for us. As one of Malaysia's largest trading partners, China remains an important market in the region," said Datuk Shireen.

Datuk Shireen said that the collaboration was a positive development for Bursa Malaysia as it would further develop the internationalization of both parties' marketplace, and serves to formalize the intent of both exchanges to enhance the accessibility of investors for both markets.

"We look forward to working together with SZSE to bring even further value for our domestic and global investors."

For his part, Wang Jianjun said the collaboration created a new chapter in the group's history, and set a good example for the capital market.

"Even during this challenging time of the (COVID-19) pandemic outbreak, we are able to continue our friendship by strengthening this collaboration further," he said.

According to Wang, both exchanges have had an in-depth discussion on promoting the Chinese and Malaysian capital markets as a platform for fundraising, bridging the capital flow and nurturing innovative business ideas.

"Our discussion is aligned with the Chinese government framework for development in the Guangdong-Hong Kong-Macao Greater Bay Area. Bursa Malaysia and SZSE have been very committed to making progress in this collaboration," he added.

The MoU also includes a plan for joint market promotion, information sharing, developments in people and technology as well as other forms of cooperation in business development for the benefit of both exchanges.

The collaboration will be initiated with Bursa Malaysia and SZSE hosting a joint virtual seminar titled "China-Malaysia Electronic Industry Cooperation" at the end of April.

The seminar, which will feature a panel of speakers including industry experts on cross border collaborations and investment opportunities, will highlight the significance of the electronics industries in both markets and their roles in a new era of digitalization amid the fourth industrial revolution.

Datuk Shireen, who is keen to see more public listed companies adopt new technology platforms to promote their businesses globally, opined that Malaysian companies must keep looking forward and prepare for the recovery of economy.

"Therefore, one of the first steps we will look into is the virtual panel discussion on Supply Chain for the Belt and Road Initiative with Malaysian companies."