SGX taps Chinese bank to boost Singapore's capital market profile

It inked the deal at the 3rd Singapore-Shanghai Financial Forum.

Singapore Exchange has entered into a memorandum of understanding (MOU) with Shanghai Pudong Development Bank (SPDB) to strengthen capital market ties between Singapore and Shanghai. The MOU outlines several areas for closer collaboration with a focus on leveraging the international fund raising platform of SGX.

SPDB will recommend Chinese enterprises to raise funds through initial public offers (IPOs), listing of Real Estate Investment Trusts (REITs) and Business Trusts, and issuance of Offshore Renminbi (RMB) Bonds, including depositing their bonds where applicable, in the Central Depository of SGX.

The two entities will work closely to raise Singapore's capital market. SPDB will also explore opportunities in gold futures on SGX. Both parties have also committed to jointly organising forums on SGX listings and commodity derivatives in China and Singapore.

Head of equities and fixed income at SGX Chew Sutat said, "Our partnership with SPDB which is well-regarded within China’s capital market for its outstanding performance and business innovation will not only raise Singapore’s profile as an offshore centre and international exchange, but also support Chinese companies’ capital-raising needs as they seek international opportunities and profiling.”