TMX Group Limited (TSX:X) and the Shenzhen Stock Exchange (SZSE) have announced the execution of a non-binding Memorandum of Understanding (MoU) pursuant to which TMX Group and SZSE agree to explore opportunities for economic cooperation with a specific focus on the technology and innovation sectors, areas that are experiencing rapid growth in both Canada and China.
Under the scope of the MoU, TMX Group and SZSE intend to create the “China-Canada Technology and Innovation Companies Service Initiative” (the China-Canada Initiative) with the goal of connecting investors and companies in the technology and innovation sectors in each of the two countries through an expanded capital formation platform. The China-Canada Initiative will include a combination of existing services, facilities and networks. As part of this initiative, SZSE and TMX may also explore the possibility of creating trading, and clearing and settlement connections between Canada and China.
TMX and SZSE share a commitment to exploring new pathways to growth for innovative companies of all sizes across our markets,” said Lou Eccleston, CEO, TMX Group. “With this MoU, we look forward to the collaborative work ahead as we seek to leverage the strengths and expertise of our two organizations to establish lasting, mutually beneficial connections between our markets and our countries.
China and Canada have a great potential for economic cooperation especially in the technology and innovation sectors,” said Wang Jianjun, President and CEO, SZSE. “Both SZSE and TMX are dedicated to building a multi-tier market to cater to demands of innovative companies at different developing stage and we have lots of common ground for future cooperation.
The MoU was subject to approval from the China Securities Regulatory Commission, which was obtained on September 27, 2017, and is effective for a period of five years.