TMX Group Ltd. (TSX: X), the operator of the Toronto Stock Exchange and Toronto Venture Exchange, has inked a memorandum of understanding with the Shenzhen Stock Exchange, one of the three stock exchanges in China.
The non-binding agreement lays out a plan for the two groups to collaborate on creating the "China-Canada Technology and Innovation Companies
Service Initiative." The goal of that initiative would be to introduce companies from each country that are emerging as leaders in hot technology and innovation sectors to investors from the opposite country through an expanded capital formation platform.
Last month, the Shenzhen’s general manager Wang Jianjun visited TSX President Louis Eccleston to discuss cultivating young enterprises and cross-border opportunities, albeit investment, personnel or communications.
The plan is to utilize a combination of existing services, facilities and networks of each organization, while mulling the possibility of creating trading, clearing and settlement connections between Toronto and the Futian district of Shenzhen, Guangdong, China. The MOU has a term of five years.
The two exchanges are roughly comparable in size, although the TSX is older by 126 years. According to an April graphic from the Visual Capitalist, the TSX had 1,524 listed companies compared to 1,420 for the Shenzhen. The aggregate market capitalization for the Toronto Stock Exchange was $2.78 trillion, versus $2.29 trillion for the Shenzhen.
The two weigh in at numbers eight and nine, respectively, on the list of the biggest stock exchanges in the world.
The TSX didn’t exactly sprint to the news service with the signed MOU. The agreement was approved by the China Securities Regulatory Commission on September 27.
Related Stories
