of Monetary Authority of Singapore (MAS) announced new initiatives aimed at strengthening financial cooperation with China.
These initiatives focus on green finance and capital markets, further strengthening the strong ties between the two countries.
One key initiative is to expand the Common Ground Taxonomy (CGT) to include Singapore and Asian taxonomies by the end of 2024.
This exercise compares the green standards of the European Union, China and Singapore taxonomies to promote cross-border green financial activities such as lending, bond issuance and investment.
Industry partners from both countries are also collaborating on the issuance of Panda bonds through the Green Corridor to further facilitate the flow of green finance.
For example, CapitaLand Investment recently issued three-year sustainability-linked panda bonds totaling RMB 2 billion under this framework.
MAS and the People’s Bank of China are also considering a pilot program to enhance foreign investors’ access to China’s bond market.
The pilot will enable Singapore banks to offer trading and custody services for certain fixed income products within the China Interbank Bond Market.
In addition, MAS and the China Securities Regulatory Commission have confirmed that the Singapore Exchange (SGX) and the existing exchange-traded funds (ETFs) between the Shenzhen Stock Exchange and the Shanghai Stock Exchange will be launched in 2022 and 2023, respectively. ) Discussing expansion of product links.
SGX is also working with China Securities Index to develop a second index, following the successful launch of the Emerging Asia Technology Index earlier this year.
The initiative was announced at the 20th Joint Council for Bilateral Cooperation (JCBC) meeting, co-chaired by Singapore’s Deputy Prime Minister Gan Kim Yong and China’s Deputy Prime Minister Ding Xuexiang.
The meeting also saw the first listing on the Singapore Exchange of the Panda Bond, a 5 billion yuan three-year bond issued by UOB with Singapore Bank of China as lead manager in October 2024, demonstrating growing interest in this market. Ta.
A memorandum of understanding was also signed between UOB and the Shanghai Gold Exchange to strengthen cooperation in gold trading and services, particularly to facilitate independent trading and physical delivery of gold products to ASEAN gold suppliers and investors. The aim is to provide innovative services.
Finally, MAS welcomed eligible Chinese companies to be listed on the SGX, allowing them to enter Southeast Asian markets and access international capital.
This is in line with the policy of the China Securities Regulatory Commission (CSRC) to help eligible domestic enterprises access international capital markets for growth.
Mr Chee Hong Tat, Minister of Transport, Second Minister of Finance and Vice Chairman of MAS, said:
“Financial cooperation has become an important pillar supporting the strong bilateral relationship between China and Singapore.
The series of strong initiatives announced today to mark JCBC’s 20th anniversary reflects our continued commitment to deepening financial connections between our markets. ”
Featured image credit: Edited from freepic
