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ABU DHABI / WAM
A high-level Chinese delegation from Shanghai Stock Exchange (SSE), headed by Fu Hao, Deputy Director-General of Global Business Development Committee and Managing Director of Global Business Development Department of SSE, visited the Abu Dhabi Securities Exchange (ADX). The aim of the visit is to deepen cooperation and explore partnership opportunities between the two stock markets.
During their meetings, the two sides began with a comparison of regulatory experience and insurance services. Experts representing both exchanges also 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. ADX and SSE are also considering the possibility of developing a joint compilation index, as they evaluate the benefits brought by the various liquidity enhancement schemes.
Commenting on the importance of the visit, Khalifa Salem Al Mansouri, Acting Chief Executive of ADX, 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 percent since the beginning of this year. We have distributed more than AED25 billion in cash dividends to 572,774 eligible investors – representing an increase of 6.95 percent compared to last year.”
He added that net institutional investment from the beginning of January till the end of August this year increased by 93 percent to reach AED2.6 billion in comparison to AED1.4 billion for the same period in 2018.
“We are delighted that SSE has 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,” Al Mansouri noted.
ADX presented to the SSE delegation the Environmental Social and 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.
The visit follows on Al Mansouri’s own visit to the Shanghai Stock Exchange in July, which was aimed at identifying and exploring cooperation opportunities for investors and business for both exchanges.