The new initiatives have been announced
According to the Monetary Authority of Singapore, China and Singapore have deepened their financial cooperation.
This comes with the Monetary Authority of Singapore’s announcement of new initiatives that will strengthen financial collaboration between China and Singapore.
Reviewed at the 17th Joint Council for Bilateral Cooperation (JCBC), between China and Singapore, the collaboration will focus more on green finance and capital markets. Singapore Deputy Prime Minister and Coordinating Minister for Economic Policies, Mr. Heng Swee Keat, and People’s Republic of China Executive Vice Premier of the State Council, Mr. Han Zheng, co-chaired the JCBC.
The initiatives include:
ETF Connect – This is a newly established Exchange Traded Funds (ETF) Product Link between Shenzhen Stock Exchange and Singapore Exchange (SGX). It will enable fund managers to provide investors with ETF products in their markets.
Bond platform linkage – This is in talks between China Foreign Exchange Trade System (CFETS) and SGX to help form an association between the platforms used to trade bonds. It will ease the access to investors to the bond sector in China.
Commodity derivatives collaboration – The initial Overseas Special Brokerage Participant (OSBP) of the Shanghai International Energy Exchange (INE) is Asia Pacific Futures (APF). The collaboration will be pivotal for investors based in Singapore to onshore commodity products via APF. This will further price discovery and international aid in the commodity derivatives market in China.
Green Finance – The People’s Bank of China (PBC) and MAS will explore a collaboration in the public-private sector more so in green FinTech and taxonomies.
The reputable financial collaboration between Singapore and China has been pivotal in enhancing financial flow and trade between the two nations. The green finance and capital market initiatives will improve financial collaboration that will aid growth in the two regions.
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