By Chris Devonshire-Ellis
The Chinese cities of Shanghai and Beijing recently played host to the Moscow Exchange Forum, where cooperation between Russian and Chinese stock exchanges was discussed. The event took place amid deepening trade friction between China and the US, with Chinese investors eyeing ways to diversify their investments.
At the forum, which featured the attendance of representatives from both Chinese and Russian investment banks and funds, the Shanghai Stock Exchange and the Moscow Exchange agreed to enhance cooperation.
At the forum, Igor Marich, Managing Director of the Money and Derivatives Markets at the Moscow Stock Exchange said: “In September, we held the first conference with the Shanghai Stock Exchange in Moscow, which was attended by Chinese brokers as well as infrastructure representatives. They debated about the trade war [with the United States] and the challenges that they subsequently face, and they believe that changes in relations with the West are pushing them to take a different look at opportunities in Russia. In my opinion, this opens up new opportunities for us.”
Marich also noted: “We can see the potential and are confident that Chinese capital will come to the Russian market, and in the near future we will already have deals. Our Chinese partners and brokers are also making efforts which will help us see results.”
Chris Devonshire-Ellis of Dezan Shira & Associates comments: “Western sanctions on Russia have made the Russian economy good value at present with a low ruble impacting negatively on asset prices. This means there are bargains to be had in Russian investments and products for economies who can buy in foreign currency. The Chinese know this and can be expected to pick up holdings in Russian stocks in the immediate future.”
China Briefing is produced by Dezan Shira & Associates. The firm handles foreign investment into China, ASEAN, India and Russia. For assistance with investments into Russia please contact Maria Kotova at firstname.lastname@example.org; Daisy Zhang, on our Chinese Outbound Investment desk at email@example.com, or visit our practice at www.dezshira.com.