The Shanghai Stock Exchange signs a memorandum of understanding with the Paris-headquartered pan-European stock exchange group Euronext on Oct 16 to co-develop CAC 40-based Exchange Traded Fund products. [Photo/sse.com.cn]

The Shanghai Stock Exchange (SSE) signed a memorandum of understanding with the Paris-headquartered pan-European stock exchange group Euronext on Oct 16 to co-develop CAC 40-based Exchange Traded Fund (ETF) products.

CAC 40 is a benchmark French stock market index and one of the key reference indexes for overseas investors to enter the European market.

Axel Cruau, consul general of France in Shanghai, said that this cooperation is a significant move in the further opening-up of China's capital market. and the development of CAC 40-based ETF products will make it more convenient for Chinese investors to enter the French stock market.

Liu Shaotong, vice-general manager of SSE, said that Euronext is a leading stock exchange in Europe, and its products and businesses have reached major global markets. The launch of CAC 40-based ETF products at the SSE helps to build closer ties between the two exchanges and enrich SSE's products.

Liu added that SSE, a significant part of China's capital market, will seek further cooperation with overseas exchanges to improve its international influence and to contribute to the globalization of China's capital market.

Stephane Boujnah, CEO of Euronext, said this cooperation will help Euronext to further expand its business in China, and expected more cooperation with SSE.

Representatives from nearly 30 financial institutions at home and abroad attend the signing ceremony of the Shanghai Stock Exchange and the Paris-headquartered pan-European stock exchange group Euronext on Oct 16. [Photo/sse.com.cn]