APD | Chinese exchange market and Sri Lanka sign MoU on securities clearing

By APD Easwaran

COLOMBO, Dec. 18 (APD) -- The Chinese exchange market and Sri Lanka have signed an agreement on securities clearing and depository, Sri Lanka’s Colombo Stock Exchange (CSE) announced on Tuesday.

Sri Lanka’s Central Depository Systems (Pvt) Ltd (CDS) and China Securities Depository and Clearing Corporation Limited (CSDC) have committed towards pursuing a cooperative relationship in the areas of securities clearing and depository.

This commitment was formalized with the signing of a MoU between the two depositories during a visit by CSDC officials to Sri Lankan.

CSDC is a non-profit-oriented corporation with Shanghai Stock Exchange and Shenzhen Stock Exchange as its shareholders, each holding 50% equities.

As CDS and CSDC work together in future, the MoU will pave the way for the depositories to exchange information and expertise on business operating models and other securities market developments.

“It is my great pleasure to sign this MoU in the beautiful city of Colombo, which bears vivid witness to the friendly relations that the Chinese and Sri Lankan people have long enjoyed. We appreciate the indispensable role that CDS plays in the Sri Lankan capital market as well as its constructive contribution to the industry in the Asia-Pacific region and look forward to closer ties between our two organizations,” CSDC Deputy Chairman of the Board Dr. DAI Wenhua said.

Commenting on the development, CSE and CDS Chairman Ray Abeywardena said that with the MoU, a formal channel will be established of collaboration with CSDC, which is a depository that plays a crucial role in the Chinese capital market and the rest of the Asian region.

“We are particularly keen to work with CSDC on further developing our clearing and settlement function, particularly in the areas of strengthening registration and settlement infrastructure,capacity building and improving the services offered to stakeholders of the Sri Lankan capital markets. Cooperation with peer depositories and international markets is essential to raising the bar in the Sri Lankan capital market and we pleased to collaborate with CSDC in this regard.”

(ASIA PACIFIC DAILY)