The Philippine Stock Exchange [PSE 164.8 0.1%] [link] disclosed that it had signed a “cooperation agreement” with the China-based Shenzhen Stock Exchange (SZSE).
According to the PSE, the agreement is intended to increase communication between the executives of the PSE and SZSE, to facilitate access of investors on either side to the products and opportunities of the other, and to “market development” and IT “capacity building”.
PSE President, Ramon Monzon, said that one of the “main objectives” of the PSE in entering into this agreement is to “bring PSE up to par with neighboring stock exchanges” by learning from the SZSE, which Mr. Monzon calls, “one of the fastest growing markets in Asia”.
MB BOTTOM-LINE
Stock exchanges are heavily regulated, but they’re also profit-seeking corporations that exist to maximize shareholder returns.
Is there a great deal of demand for Chinese investors to buy an exchange-traded fund (ETF) of PSE stocks?Hard to say.
But I do know that there are an awful lot of local investors who would appreciate the ability to buy an ETF of SZSE stocks.
Even more interesting to me is the bit about learning from the SZSE to improve our own market development and IT skills.
Anyone that trades on a non-PH stock or crypto exchange will know that our own market is decades behind in nearly all aspects, and I like seeing the PSE make a move like this to attempt to address some of these deficiencies.
Some things, like the lack of short selling, are not within the control of the PSE, but it’s nice to see the PSE taking steps to address some of the things that are under its control to improve the experience and opportunities of the investors that use their platform.
I’d love the opportunity to speak with Mr. Monzon to get a better idea of what these improvements could be, and when investors could expect to benefit from their introduction!
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