SGX inks deals to boost ties with Chinese firms

The firms will help develop China and Singapore derivative markets through financial market education.

Singapore Exchange (SGX) signed two Memorandums of Understanding (MOUs) with Zhejiang Entrepreneurs Association (ZJEA) and China Futures Association (CFA) to further strengthen its ties with Chinese companies and markets, an announcement revealed.

The MOU between SGX and non-profit organisation ZJEA is intended to foster collaboration in developing Singapore capital market opportunities for China enterprises, thanks to ZJEA’s strong links with Zhejiang enterprises and reach across China, SGX said.

“China has entered a new phase of economic development, in which capital markets can play an important role to strengthen its competitiveness globally,” ZJEA president Li Guosheng said.

Meanwhile, CFA will renew its partnership with SGX which was first established in 2013. It will cooperate in the development of the derivative markets in China and Singapore through financial market education and research under the MOU.

“Together with our partners, we will continue to promote Singapore as a choice location for Chinese companies looking to expand their businesses internationally,” SGX’s chief executive officer Loh Boon Chye said.

About 20% of listed companies and 15% bond issuers on SGX are from Greater China, with over $206b market capitalisation and $294b outstanding amount respectively, the statement revealed.