SG, China deepen cooperation in green finance, capital markets

They will work on three initiatives.

The Monetary Authority of Singapore will roll out three initiatives to expand the Lion City’s cooperation with China in green finance and capital markets.

Amongst the initiatives are the establishment of the China-Singapore Green Finance Task Force which will facilitate greater public-private sector exchanges between the two nations, which, in turn, will allow better mobilisation of private capital for the region’s sustainable development needs.

The task force will also explore collaboration in areas such as standards and definitions, green and transition financing solutions, and data and technology enablers to catalyse green financing flows, and enhance green investment opportunities in China and the region.

By year-end, the Singapore Exchange (SGX) and Shenzhen Stock Exchange (SZSE) will welcome the first three participating  Exchange Traded Funds (ETFs) under the ETF Product Link.

“These participating ETFs are launched under collaborations between China Southern Asset Management and CSOP Asset Management Singapore, as well as between Ping An Fund
Management Company and United Overseas Bank Asset Management,” the MAS said.

The link will allow investors in China and Singapore to access ETF investment opportunities in each other’s markets.

By the end of 2022, the two exchanges will also roll out a Low Carbon Index Family that will serve as a benchmark for fund managers to launch new green funds focused on China, ASEAN and other countries in Asia

“This will raise investor interest in green investment opportunities in our region, and channel capital towards the region’s leading sustainable firms,” the MAS said.