Shenzhen bourse eyes tieups with PSE

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THE Shenzhen Stock Exchange (SZSE) is on the lookout for increased collaboration with its Philippine counterpart given warmer ties between Manila and Beijing.

“Bilateral relations between the two countries are warming up and there is a great amount of investment from China into the Philippines and therefore it is in natural interest that the two capital markets should seek possible collaboration opportunities so that we can work together to improve either liquidity, investment, capital formation,” SZSE director Liu Fuzhong told The Manila Times a the sidelines of a conference in Makati on Thursday.

“We have not determined the exact projects the two exchanges will be working on but I think there is a very strong concensus that the two capital markets should be working together,” he added.

Liu expressed interest in cross-border bond transactions and said the government’s plan to issue panda bonds could lead to Philippine companies looking to raise funds in China.


“[T]he panda bond may be a very good project for Philippine companies to issue bonds in China, in Shenzhen Stock Exchange and raise financing,” Liu said, adding that the bourse would particularly support fund-raising for infrastructure projects.

“We’d like to work on that with the PSE and other financial institutions — Bank of China, CLSA Philippines and other financial institutions that we know. We can bring Chinese investors to the Philippines and we hope that we can find good Filipino projects so that we can formulate some kind of collaboration, bring Chinese capital into very prospective Philippine projects,” he said.

In October, PSE President Ramon Monzon said the bourse was in preliminary talks for the SZSE’s purchase of a minority stake via the local bourse’s follow-in offering.

Noting that both stock exchanges had already signed a cooperation agreement in 2009, Monzon said the acquisition could lead to the establishment of the “Shenzhen-Manila Connect” trading link.

The Shenzhen bourse has remained mum on the issue, saying “nothing in financial transactions have been determined yet.”

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