SINGAPORE: The Singapore Exchange and the Vietnam Exchange have signed a memorandum of understanding to strengthen collaboration and jointly explore establishing a depository receipt linkage between the two markets.
Under the agreement, they will jointly assess the framework, operational requirements and market infrastructure needed for a depository receipt linkage. The proposed arrangement would allow investors in each market to gain exposure to selected companies listed on the other exchange through locally traded instruments, the two parties said in a statement on Thursday (Oct 1).
The initiative is also expected to broaden investor access, raise the visibility of listed companies and create additional avenues for capital formation in both markets.
The exchanges will now begin technical discussions to identify suitable pathways for implementation. - Xinhua
