SGX Signs MOU to Enhance Capital Market Links Between Singapore and China

A memorandum of understanding (MOU) has been signed between the Singapore Exchange (SGX) and Commercial Bank of China Limited (ICBC) to develop derivatives trading, bond trading and market making of Ren Min Bi dominated contracts registered on SGX. The ICBC will also promote Singapore’s capital markets, while SGX will help Chinese companies list equities and bonds, particularly in real estate trusts and offshore Ren Min Bi bonds.

Singapore Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (SGX) and Industrial and Commercial Bank of China Limited (ICBC) have signed a memorandum of understanding (MOU) to collaborate on enhancing the links between Singapore and China’s capital markets.

We are pleased to be working with SGX to encourage Chinese companies’ participation in Singapore’s capital markets.

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“We look forward to working with ICBC to enhance the collaboration between China and Singapore’s capital markets, supporting Chinese companies to raise capital and seek investment opportunities through Singapore, whilst also helping to further internationalise the RMB”, said Chew Sutat, Head of Equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term and Fixed Income.

Under the MOU, SGX and ICBC will collaborate to promote Singapore’s capital markets and support Chinese companies seeking to list equities or bonds on SGX, with a focus on real estate investment trusts (REITs) and offshore RMB bonds.

The support will include providing guidance on the listing process, listing rules as well as post listing marketing support in both China and Singapore.

SGX and ICBC will also explore collaboration in derivatives trading, bond trading and market making of RMB denominated contracts listed on SGX.

Zhang Weiwu, General Manager of ICBC Singapore branch, added: “As China’s largest bank and Singapore’s sole RMB clearing bank, we are pleased to be working with SGX to encourage Chinese companies’ participation in Singapore’s capital markets, especially as Chinese companies continue to adopt an increasingly global outlook in their growth, expansion and funding prospects.”