LOCATION: BELT AND ROAD/NEWS

SZSE Issues the CNI Dhaka Selected Index to Promote the Deepening Cooperation Between China-Bangladesh Capital Markets

Date: 2020-01-03

On 30 December 2019, the launch ceremony of the CNI Dhaka Selected Index, the first cross-border joint index and cross-border co-branding index of SZSE, was successfully held in Dhaka, the capital of Bangladesh. Representatives from SZSE, Dhaka Stock Exchange (DSE), over 200 Bangladeshi securities firms and relevant institutions attended the ceremony. At the ceremony, SZSE’s wholly-owned subsidiary Shenzhen Securities Information Co., Ltd. (SSIC) and DSE signed the index development cooperation agreement and the MOU on index business cooperation. This activity marks an important attempt of SZSE to innovate cross-border information cooperation mode, also another significant achievement of further cooperation between the two countries’ capital markets.  

  

From leading a Chinese consortium to purchase shares of DSE in May 2018, SZSE has actively made full use of its advantages in technology, experience and network, carried out key cooperative projects in an orderly manner, completed the preparation for the application of SZSE’s information disclosure system in DSE, and launched the Bangladesh zone of SZSE’s investment and financing service platform for innovation and startup (V-Next), assisting over 70 Bangladeshi enterprises in connecting with more than 100 Chinese enterprises and investment institutions.  

  

The CNI Dhaka Selected Index was jointly compiled by SSIC and DSE by selecting 40 stocks featuring large market capitalization, good liquidity and financial soundness on DSE as constituents, whose market capitalization coverage rate is nearly 70%. It forms an important foundation for reflecting the comprehensive performance of the market and developing diversified products, and is conducive to the improvement of resources allocation and healthy development of the capital market in Bangladesh. According to the cooperation agreement, SSIC will provide training on index compiling for DSE, jointly research and develop cross-border index system with DSE, and promote the development of DSE’s index capacity.  

  

Under the leadership of the CSRC, SZSE will deepen the reform and expand opening up unswervingly, uphold the principle of “wide consultation, joint contribution and shared benefits”, and fully leverage its strengths in the market and location to improve cross-border service mechanism. It will, starting from the index cooperation, further promote the capability development of DSE and market resource connectivity between China and Bangladesh, strive to create a model for cooperation between exchanges in the emerging market, take active steps to serve the development of the capital markets of the countries and regions along the Belt and Road, provide a sustainable financial support for the construction of BCIM Economic Corridor (involving Bangladesh, China, India and Myanmar), and better serve the building of Guangdong-Hong Kong-Macao Greater Bay Area and the pilot demonstration area of socialism with Chinese characteristics.  

This activity marks an important attempt of SZSE to innovate cross-border information cooperation mode, also another significant achievement of further cooperation between the two countries’ capital markets.