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VEB and the Shanghai Stock Exchange discussed entry of Russian innovation companies into Chinese stock market

Chairman of Vnesheconombank Sergey Gorkov met President of Shanghai Stock Exchange Huang Hongyuan. The event was held in conjunction with the VEB delegation working visit in China timed to coincide with the BRICS Summit.

The parties discussed greater financial cooperation in local currencies and interaction on capital markets, as well as the prospects for funding Vnesheconombank via issuing debt securities in the Chinese market. The focus of attention was also on the mechanisms of placing securities of innovation companies on the stock exchange.

“We have great interest in the Shanghai Stock Exchange experience in IPOs of innovation companies since it is of top significance for organizing the whole funding chain for breakthrough start-ups: from their development in business accelerators and crowd-funding to public offerings in the stock exchange market,” said Sergey Gorkov. “Another important issue is the facilitation of access for Russian companies to the Asian capital market. There is a potential for fostering the Russian-Chinese financial cooperation here, in particular, in the alignment of integration projects of the Eurasian Economic Union and the Silk Road Economic Belt. The introduction of Russian innovation companies to the Shanghai Stock Exchange trading could prove to be a good strategy. Alongside with fund-raising, it could also help promote the brand in the colossal marketplace. In the digital economy epoch, products are not limited by national boundaries.”

Previously, in Beijing, Vnesheconombank signed an interbank agreement establishing a framework mechanism to extend credit lines in local currencies to the BRICS ICM members and companies in the BRICS countries against guarantees of the ICM banks.

The parties also signed a Cooperation Memorandum Relating to Credit Ratings which provides for the BRICS ICM members to share information about internal credit ratings assigned to clients, as well as rating assessment and assignment methodologies.

Furthermore, as part of the visit of Vnesheconombank’s delegation to Shenzhen, the bank entered into a memorandum of understanding with China Merchants Capital aimed at financing joint projects and establishing funds to invest in high-tech and innovation industries. The parties are considering joint participation in one of the funds focusing on investment in Russian companies, including export-oriented companies. The partnership also offers new opportunities for Vnesheconombank’s investment projects to enter the Chinese stock exchange market which is to facilitate the increase in capitalization of Russian high-tech companies.


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