WASHINGTON (AP) _ The Nasdaq Stock Market and the largest bourse in China, The Shanghai Stock Exchange, signed agreements Monday that could lead to dual listing of stocks on the exchanges.

The National Association of Securities Dealers Inc., the industry group that runs Nasdaq, agreed to assist the Shanghai exchange establish a self-regulatory organization to police its market.

The Shanghai Stock Exchange will encourage the listing of Chinese companies on the Nasdaq Stock Market, this nation's second largest market behind the New York Stock Exchangea.

Nasdaq would reciprocate for Shanghai. The Shanghai Stock Exchange is the largest in China, with 550 member firms, 208 listed companies and trading volume of 2.5 trillion shares last year.

Christopher Spille, Nasdaq business development director, said the agreement marks a more aggressive effort by Nasdaq to recruit foreign companies. Already, the exchange lists securities of 330 non-U.S. companies such as London-based media giant Reuters Holdings PLC or Japanese carmaker Nissan Motor Co. Ltd.