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SHANGHAI: The Shanghai Stock exchange said it signed Memorandum of Understanding (MoU) with the Saudi Exchange in Riyadh on Sunday, to lay the foundation for future cooperation.

Both exchanges will explore cooperation opportunities in cross-listings, fintech, ESG (Environmental, Social, and Governance) and research, the Shanghai exchange said in a statement on Monday.

“We are happy to cooperate with the Saudi Exchange,” said Cai Jianchun, general manager of the Shanghai exchange. “We look forward to jointly promoting product cooperation including exchange-traded funds (ETFs), and deepen the connection between the two capital markets.”

China and Saudi Arabia’s stock exchanges had been in talks to allow ETFs to list on each other’s bourses, three sources told Reuters last month, as the countries look to deepen financial ties amid warming diplomatic relations.

The Shanghai exchange had signed MoUs with 57 offshore institutions, and it will steadily promote diversified cooperation with overseas exchanges, the exchange said.

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