Hungarian-Chinese stock exchange cooperation

The Budapest Stock Exchange (BSE) entered into a cooperation agreement with one of the world's largest stock exchanges, the Shanghai Stock Exchange. The two organizations will work jointly on the development of new products that can be accessed by Hungarian and Chinese investors. BSE has taken another step towards building closer co-operation with the dynamically growing Chinese capital market, a press statement by BSE points out.

Within the bounds of the newly launched partnership, the two stock exchanges will develop investment products and initiate a joint research activity. The cooperation also includes exchange of information on the capital market, stock market operation and regulation.

Over 1,400 companies’ shares are traded on the Shanghai Stock Exchange, its daily average turnover is bigger than the entire Hungarian market capitalization. The Shanghai Stock Exchange was founded in 1990; it operates in the form of a non-profit organization, governed directly by the China Securities Regulatory Commission (CSCR), the Chinese securities market supervisory body. The exchange is one of China’s two independent stock exchanges, the other is Shenzen. Both markets provide wide range of shares, bonds and other securities.

Strengthening cooperation with dynamically developing China is a key element of the capital market development activity of the Budapest Stock Exchange. In January 2017, the BSE signed a similar memorandum of understanding with the Bank of China which could effectively promote, among other things, the presence of yuan-based tradable products on BSE.

The Far East has dominated the global IPO (initial public offering) scene since 2014. On the Shanghai and Shenzen stock exchanges alone, there were 436 public equity issues in 2017, a quarter of the new IPOs worldwide. In terms of the total value of transactions, the world leader was the Shanghai Stock Exchange both in 2017 and 2016.