Image caption Bovespa is facing increased domestic competition

The Shanghai Stock Exchange and Brazil's BM&F Bovespa are due to sign an agreement on Monday that could lead to closer ties between the two.

Bovespa said it was looking for cross-listing across both exchanges, although this would not happen immediately.

The bourse, which is the world's fourth largest, is facing increased competition in its domestic market.

The agreement is the latest in a series of tie-ups between the world's leading stock exchanges.

Bovespa said the objective of the deal was "to initiate a common discussion about business opportunities and exchange information".

On Tuesday, NYSE Euronext and Deutsche Boerse formally announced plans to merge, a deal that would create the world's largest stock exchange operator.

Earlier this month, the London Stock Exchange and TMX Group, which operates the Toronto Stock Exchange, also agreed a merger deal.

The established global exchanges see consolidation as a way to fend off increased competition from new platforms that have eaten into their trading volumes.