Signed by Fulin Shang, chairman of the CBRC, and Richard Teng, chief executive of Abu Dhabi’s Financial Services Regulatory Authority (FSRA), the memorandum of understanding (MoU) facilitates co-operation and the exchange of information between the jurisdictions.
It also supports the exchange of regulatory information and the development of financial institutions in both Abu Dhabi and China.
Mutual assistance
The agreement provides a framework for FSRA and CBRC to render mutual assistance, exchange relevant regulatory information, and co-operate in the supervision and oversight of the compliance of financial institutions with applicable banking laws and regulations.
Both authorities will also be able to leverage the MoU to explore and launch mutually beneficial initiatives; such as joint training and technical assistance to strengthen the high regulatory standards and practice in their respective jurisdictions.
Joint efforts
After the MoU signing, Shang and Teng met to discuss ongoing initiatives by Chinese banks and financial institutions with ADGM. They also discussed areas of cooperation including joint efforts and initiatives to support the aspirations of both Chinese and UAE banks and financial institutions to engage in cross-border activities and business expansion.
The signing also lays a strong foundation for further economic and financial cooperation between China and Abu Dhabi and comes after the inclusion of the UAE in the RMB Qualified Foreign Institutional Investor (RQFII) quota aimed at promoting bilateral trade and investment, worth around CNY50bn (£5.3bn, $7.7bn, €6.7bn).
One belt, one road
“With China’s strategic ‘One Belt and One Road’ initiative, Chinese financial institutions and stakeholders are increasingly expanding their investment, trade and economic engagement in the Middle East and Africa,” said Teng, referencing China’s push to take a bigger role in global affairs by forging greater connectivity and cooperation between China and Eurasia.
“As the international financial centre of Abu Dhabi, ADGM is committed to play its role as a strategic and economic partner for Chinese stakeholders in advancing their commercial aspirations in this region.
“Similarly, ADGM supports its local stakeholders in their aspirations to expand their engagement with China. We look forward to building a long-term and meaningful relationship with the China Banking Regulatory Commission and support China’s One Belt, One Road initiative,” Teng added.
