(Photo: Xinhua)

The Shanghai Stock Exchange and Japan Exchange Group signed an ETF (exchange-traded fund) agreement Monday in Shanghai.

The ETF Connectivity Agreement was signed at a China-Japan capital market Forum jointly held by seven organizations, including the Shanghai Stock Exchange, Shenzhen Stock Exchange and Japan Exchange Group.

Toshihide Endo, the commissioner of Japan's Financial Services Agency, said Japan and China had achieved many pragmatic results in financial cooperation that had been welcomed by the Japanese government and hoped that the momentum would be advanced further.

The Japanese official also said it was of great importance for both Japan and China to work together to promote reform of the capital markets, as well as boost innovation and sustainable development of the economy.

Under the agreement, the Shanghai Stock Exchange and Japan Exchange Group will list each other's ETFs, and fund companies from both sides are able to invest their fund assets in ETF products.