Singapore Exchange joins hands with China bank to boost capital market ties
The Singapore Exchange (SGX) and the Shanghai Pudong Development Bank (SPDB) have signed a memorandum of understanding (MoU) at the 3rd Singapore-Shanghai Financial Forum, to strengthen capital market ties between Singapore and Shanghai.
Under the MoU, SGX and SPDB will work closely as strategic partners to raise the profile of Singapore’s capital market. 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 offering, listing of real estate investment trusts and business trusts, and issuance of offshore renminbi bonds, including depositing their bonds where applicable, in the Central Depository of SGX.
The MoU touches on financial and commodity markets as well, with SPDB exploring opportunities in gold futures on SGX. SGX’s Singapore Kilobar Gold Contract is the world’s first Shariah-compliant, exchange-traded and physically delivered wholesale gold futures. Both parties have also committed to jointly organising forums on SGX listings and commodity derivatives in China and Singapore.
Additionally, cooperation in other areas such as bulk commodities, freight, foreign exchange as well as derivatives and bond trading will be explored. Internal training and an exchange programme between SGX and SPDB staff are amongst the engagements planned. These will provide opportunities for both parties to learn and share knowledge on the business environments of Singapore and China as well as SGX’s listing requirements.