Here are Singapore-China's new initiatives to bolster financial connectivity

One of the initiatives is SGX-Shenzhen Stock Exchange's ETF Product Link.

The Monetary Authority of Singapore (MAS) revealed new initiatives to expand the financial cooperation between Singapore and China, particularly in capital markets and green finance.

This was the topic of discussion at the 17th Joint Council for Bilateral Cooperation between Singapore and China. Singapore Deputy Prime Minister and Coordinating Minister for Economic Policies, Heng Swee Keat, and the People’s Republic of China Executive Vice Premier of the State Council, Han Zheng, co-chaired the meeting. 

Below are the joint initiatives between Singapore and China:

• ETF Connect – Singapore Exchange (SGX) and Shenzhen Stock Exchange have signed a Memorandum of Understanding to establish an Exchange Traded Funds (ETF) Product Link to enable eligible fund managers to offer ETF products to investors in each other’s markets.
• Bond platform linkage – SGX and China Foreign Exchange Trade System are in discussions to establish connectivity between their bond trading platforms. This will enable greater investor access to China’s bond market.
• Commodity derivatives collaboration – Asia Pacific Futures (APF) is the first Singapore firm to become an Overseas Special Brokerage Participant of the Shanghai International Energy Exchange. This will allow Singapore-based investors to directly trade internationalised onshore commodity products through APF, thereby facilitating international participation and price discovery in China’s commodity derivatives markets.
• Green Finance – MAS and the People’s Bank of China will explore deeper public-private sector collaboration in green finance, particularly in key areas, such as taxonomies and green fintech. Clearer definitions for classifying economic activities will help catalyse greater financing flows to green and transition projects in Asia.

MAS Deputy Managing Director for Markets and Development Leong Sing Chiong said these initiatives will create significant opportunities to forge new channels of financial connectivity and integration to support sustainable and inclusive growth for both China and Singapore.