Sou Hu Cai Jing·2025-11-20 03:28Core Viewpoint - The signing of a memorandum of cooperation between China Merchants Fund, Smart (a subsidiary of the New Zealand Stock Exchange), and the Bank of China New Zealand branch marks a significant step towards enhancing the connectivity and integration of the capital markets between China and New Zealand [1][3][4]. Group 1: Partnership Details - The memorandum was signed on November 19, 2025, in Beijing, with the aim of promoting collaboration in the capital markets of both countries [1]. - Smart, established in 1996 and fully owned by the New Zealand Stock Exchange, manages over NZD 15 billion in funds and offers 44 ETF products focused on various markets including New Zealand, Australia, the US, and global equities [3]. - The partnership is expected to leverage the experience of China Merchants Fund in ETF management, which spans 15 years, to develop cross-border investment products tailored to the needs of investors in both countries [3]. Group 2: Strategic Importance - The collaboration aligns with the recent update of the Memorandum of Understanding on securities and futures regulatory cooperation between the China Securities Regulatory Commission and the New Zealand Financial Markets Authority, indicating a deepening regulatory cooperation [3]. - Mark Peterson, CEO of the New Zealand Stock Exchange, emphasized the importance of this partnership in strengthening the ties between the capital markets and asset management industries of both nations [4]. - The Bank of China expressed its commitment to supporting the project and facilitating cross-border financial cooperation, highlighting New Zealand's role as the first Western developed country to sign a Belt and Road cooperation agreement with China [4].