MAS in talks to allow Chinese expansion of Singapore financial institutions

This will allow financial institutions in Singapore and China to expand to each other’s markets.

New measures to facilitate the expansion of financial institutions in Singapore and China to each other’s markets are underway, announced the Monetary Authority of Singapore (MAS). These new initiatives will reportedly strengthen capital market activities between Singapore and China.

As part of this initiative, DBS Bank will be granted a Settlement Agent Licence by the People’s Bank of China (PBC). This will enable DBS to trade, settle and provide custody for China’s interbank bond market instruments on behalf of foreign investors, the press release stated.

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In addition, MAS and PBC will establish a cooperation mechanism that will allow designated Singapore and Chinese banks to offer custody and trading services for regional and global investors in China’s bond market. Further details will be announced later.

MAS and the China Securities Regulatory Commission are also in discussions to enhance capital market connectivity, and have agreed to strengthen cross-border supervisory cooperation to promote the healthy and stable development of the securities and futures markets, the release added.

The initiatives were discussed during the 15th Joint Council for Bilateral Cooperation between Singapore and China, co-chaired by Singapore Deputy Prime Minister and Minister for Finance, Heng Swee Keat and People’s Republic of China Vice Premier of the State Council, Han Zheng.