The Hong Kong and Shanghai stock exchanges have agreed to co-operate more on regulatory issues and jointly develop derivative products and exchange-traded funds. At a meeting of officials from both bourses in Hong Kong yesterday, HKEx chairman Ronald Arculli said: 'According to an old Chinese saying, a single tree cannot make a forest. Jointly with our mainland counterparts, we can accelerate China's growth and financial development in a prudent manner.' Listing division executives from the two exchanges will meet every two months to discuss issues of disclosure and other regulatory matters. This was to enhance regulation for companies listed in both places and boost shareholder protection, said Charles Li Xiaojia, the chief executive of the Hong Kong exchange. 'This is a great beginning,' he said. Li also sought to play down fears of Shanghai posing a threat to Hong Kong. 'We're not fighting. We're not in that kind of a relationship. We're running a marathon together.' Shanghai Stock Exchange president Zhang Yujun said although Shanghai would introduce an international board, it would not compete with Hong Kong. 'This is not a zero-sum game. Both stock exchanges would like to grow the market for China together,' Zhang said. 'Our goal is to make the cake bigger so that everyone in the market will be able to share more.' Zhang said there were enough companies in China to keep all its bourses busy. Demand for the services of securities exchanges by companies would only grow as governance and accounting practices improved, he said.