NAIROBI (Xinhua) --
Kenya’s Nairobi Security Exchange (NSE) and
China’s Shenzhen Stock Exchange plan to sign a memorandum of
understanding (MOU) to boost their cooperation, an official said
NSE CEO Geoffrey
Odundo told Xinhua in Nairobi that the Shenzhen Stock Exchange
is one of the most vibrant security exchanges in the world
despite being relatively young.
“The agreement with
the Shenzhen Stock Exchange will revolve around
capacity-building, product knowledge, as well as attracting
Chinese investors into the Kenyan capital markets,” Odundo said
during the launch of the Absa Africa Financial Markets Index
NSE has already
signed an MOU with the Shanghai Stock Exchange.
The NSE has just
concluded a study tour of the Chinese stock exchanges.
Odundo said Kenya is
also seeking to gain knowledge from China on how to increase the
number of listings at the NSE.
The MOU with the
Shenzhen Stock Exchange comes at an ideal time as Chinese
investors are adopting a strategy of investing overseas, he
Odundo said a number
of Chinese firms have expressed interest in listing and raising
capital at the NSE.
The NSE also plans
to launch a derivatives market in the first quarter of 2019.
“We are now
conducting a pilot phase using cash and we will use the output
to inform the exact date of the launch of the derivatives
trading,” he added.
Once the derivatives
market is launched, it will provide an appropriate avenue for
investors to both diversify their portfolio and protect
investments from the volatility of the securities market, Odundo