The memorandum of understanding was signed by BÉT and Bank of China in accordance with economic initiatives of The Government of Hungary and the Central Bank of Hungary towards China. The arrangement aligns with the Chinese „One Belt, One Road” initiative to foster a tighter economic and capital markets collaboration between Hungary and China.
Investor base expansion and geographic diversification are important goals of BÉT’s new strategy along with identification of new investors in order to help prospective issuer companies. The aim of BÉT is to familiarize Chinese investors with Hungarian companies and to gradually increase their investor activity. The Hungarian exchange also takes steps so that active Chinese companies in Hungary and the CEE region choose the Hungarian capital market to raise capital.
The cooperation may also help the introduction of yuan denominated capital market instruments on BÉT, moreover it can contribute to the strengthening of Chinese investor activity and Hungarian companies’ reputation increase. The intention of BÉT is to help the operation of the RQFII (RMB Qualified Foreign Institutional Investor) program among Hungarian investors, and the utilization of the Hungarian quota by local institutional investors since in the CEE region Hungary has the sole opportunity to invest directly in the Chinese onshore capital markets and interbank bond markets.