Earlier today, it was announced that Shangai Exchange (SSE) and New Zealand Exchange (NZX) have made the Memorandum of Understanding (MoU) agreement generally used to document a relationship of prosperity between the parties, which will be a business door opening for both countries in terms of the official partnership.
The MoU was written under the friendship and close economic relationship between the Republic of China and New Zealand, and it is NZX’s interest to align with the ‘One Belt One Road’ initiative, NZX said in a statement. “It marks the commitment of both exchanges to advance integration, confidence, and co-operation in the Asia-Pacific markets.” China happens to be New Zealand’s largest trading partner in the mainland. Under the agreement, NZX and SSE will look to make an agreement on a framework to help each other in the development of their respective markets. This could be an opening of the China Forex market for trader after it was closed.
We have established a common ground with our listed companies to international markets so they can grow, and today’s announcement is a further endorsement of the strategy we have in place for building scale in the New Zealand market and providing a better service offering for our customers. – NZX chairman said.
Benefits of the MOU
With the help of Memorandum of Understanding between both countries will advance the rate of exchange for the development of their markets. In addition to this, aside from the announcement the NZX chairman announced, that they are looking forward to establishing a common ground with their companies including our largest trading partners in Mainland China, they also have placed an agreement with Nasdaq, SGX, and HKEX and from the look of it seems the NZX are mostly enjoying the agreement more than the other party. Considering the agreement made between both countries, it could be a strong signal for Forex traders to trade on their currencies.
In early 2019, another meeting will be conducted to advance the agreement made and enlighten the outcome of the agreement for both parties. But from the look of it, the agreement made so far is looking good.