KUALA LUMPUR: Bursa Malaysia Bhd and Shanghai Stock Exchange (SSE) have signed a Memorandum of Understanding (MoU) to pursue a continuing relationship for the mutual benefit of the financial services industry in Malaysia and the People's Republic of China.

Under the MoU, SSE and Bursa Malaysia agree to facilitate development communication channels for the sharing of information between both exchanges,Bursa Malaysia said in a statement today.

The MoU states that further cooperation will cover aspects such as structuring of listed products, development of debt securities products and debt trading facilities, corporate governance, exchange or secondment of staff and research projects.

Bursa Malaysia Chief Executive Officer Datuk Tajuddin Atan said the MoU is an opportunity for the local bourse to work closely with SSE.

"In the past few years, the number of investment funds in China has grown substantially and many of these funds are jointly managed by international firms. They are one of the major drivers of the securities markets.

"We believe this cooperation will be the precursor to greater things as the areas of cooperation can be expanded as long as both parties agree that the move will bring manifold benefits to both exchanges and markets," he added. -- BERNAMA