Shanghai Stock Exchange to deepen Belt and Road capital market cooperation

The Shanghai Stock Exchange will foster cooperation among capital markets along the Belt and Road routes, according to an action plan it published on Oct. 27.

Belt and Road construction entails the wide participation of interest groups of relevant countries, and even the whole international community. Therefore, further financial support is necessary, according to the action plan.

The Vision and Action Plan (2018-20) for Serving the Belt and Road Construction is a guiding framework document directing the Exchange's future support of the Belt and Road Initiative.

The objective is to promote capital market cooperation, broaden direct financing channels for Belt and Road projects, mobilize enterprise and investor participation in projects, and to form a community of common interests and shared future in the capital markets.

SSE also hopes to promote the two-way opening-up of domestic capital markets and advance the development of Shanghai as an international financial center.

SSE has begun a series of cooperation mechanisms with stock exchanges in certain countries along the Belt and Road routes.

For instance, the SSE, along with other Chinese stock exchanges, acquired a 40 percent share in the Pakistan Stock Exchange; hosted capital market forums; supported the United Company RUSAL Plc. to issue "panda bonds", which refers to renminbi-denominated bonds issued by a non-Chinese issuer. It was the first issuance of "panda bonds" from an enterprise along the Belt and Road routes.