On 19th June, 2018, the National Equities Exchange and Quotations (hereinafter referred to as NEEQ) signed a Memorandum of Understanding with Hong Kong Exchanges and Clearing Limited (hereinafter referred to as HKEX) in Beijing. The relevant officers of China Securities Regulatory Commission and Beijing Municipal Bureau of Financial Work attended the ceremony.

According to the MOU, both markets welcome each other's qualified companies to be listed on both sides. NEEQ do not set up pre-approval procedures and special conditions for companies listed on NEEQ to list on HKEX.

The signing of this MOU is an important action for the capital market to support Hong Kong’s integration into national development and to comprehensively advance the spirit of mutually beneficial cooperation between the Mainland and Hong Kong. It is also an all-important first step for NEEQ to participate in the construction of a competitive international capital market with Chinese characteristics and to realize internationalization. As a crucial part of China's multi-level capital market, NEEQ will steadily push forward its opening-up while adhering to the principle of independent development, mutual benefit and win-win results and controllable risks.

The signing of this MOU establishes a fundamental cooperation framework for listed companies to finance in Hong Kong and to gain access to the resources and advantages of both domestic and foreign markets and helps them to broaden international vision and achieve high-quality development. Meanwhile, this cooperation also helps to enhance NEEQ’s global standing and its ability to serve the real economy, optimize the market price discovery function and improve the valuation efficiency.

In the next step, NEEQ will adhere to the purpose that financial markets should serve the real economy, and according to actual needs of listed companies, make more moves to improve market functions, increasing the proportion of direct financing, giving play to front-line supervision functions, and promoting the steady and rapid development of NEEQ.