The Shanghai Stock Exchange signed a memorandum of understanding with the Japan Exchange Group Oct 26 to co-develop exchange traded fund (ETF) products.

The agreement was in response to the strengthened cooperation between Chinese and Japanese futures and securities regulatory institutions, and also helps expand financial cooperation between the two countries.

The Japanese Exchange Group, the world's third-largest exchange, was formed by the merger of Tokyo Stock Exchange and Osaka Securities Exchange in 2013.

The Shanghai Stock Exchange had built partnerships with Tokyo Stock Exchange and Osaka Securities Exchange in 2002 and 2004, and maintained friendly relations thereafter.

The Shanghai Stock Exchange has been dedicated to promoting its internationalization. Its officials said that it will continue to seek partnerships with overseas bourses, explore new cooperative models between domestic and overseas capital markets, and promote the two-way opening-up of China's capital market.

The Shanghai Stock Exchange signs a memorandum of understanding with the Japan Exchange Group Oct 26 to co-develop exchange traded fund (ETF) products. [Photo/VCG]