Shenzhen Stock Exchange and Japan Exchange Group, Inc (JPX) on Monday inked a memorandum of understanding on exchange-traded fund (ETF) connectivity, innovative cross-border products, and in-depth capital market cooperation.

The MoU was signed at the second China-Japan Capital Market Forum via video link in Shenzhen.

At the first edition of the forum in 2019, the ETF connectivity between China and Japan officially began with the signing of an MoU between the Shanghai Stock Exchange and JPX.

Sha Yan, president and chief executive officer of SZSE, said at the forum on Jan 25 that the exchange will continue to prepare for the ETF production connect together with its Japanese counterpart.

In addition, she stressed that they will also strengthen capital cooperation for technologically innovative companies. For instance, SZSE’s V-Next Platform, its internet-based financial information exhibition platform, has serviced about 50 tech firms from Japan.

SZSE stated the more challenging and complex the global economic environment has become, the more it calls for an unswerving commitment to expansion and deepening of opening-up.

The two bourses pledged to jointly promote more innovative cross-border products and broaden the channel of connectivity in order to enrich investment choices for investors in both countries and facilitate the development of bilateral innovative economies through capital links.