ROBUST, TRUSTED, DYNAMIC AND

PURPOSEFUL FINANCIAL CENTRE

A DYNAMIC AND PURPOSEFUL FINANCIAL CENTRE
ENHANCING THE RMB ECOSYSTEM

At the occasions of the 12th Joint Council for Bilateral Cooperation in October 2015 and President Xi Jinping's visit to Singapore in November 2015, MAS announced key RMB initiatives to further strengthen RMB cooperation with China. These initiatives include:

  • Extending existing cross-border RMB initiatives7 to the cities of Chongqing, Suzhou and Tianjin;
  • Allowing companies in the three cities that issue RMB bonds in Singapore to fully repatriate the proceeds raised; and
  • Doubling Singapore's quota under the RMB Qualified Foreign Institutional Investor (RQFII) scheme from RMB 50 billion to RMB 100 billion.

At the same time, Singapore and China also agreed to enhance capital market cooperation, which adds a new dimension to bilateral financial cooperation. Specifically, there was agreement to institute a regular high-level dialogue between MAS and the China Securities Regulatory Commission (CSRC). MAS and CSRC also agreed to explore product collaboration to broaden capital market offerings. The first MAS-CSRC Regulatory Roundtable was held on 28 April 2016.

 

7 The existing cross-border RMB initiatives include allowing:
(i) banks in Singapore to lend RMB to corporates in Suzhou, Tianjin and Chongqing;
(ii) corporates in Suzhou, Tianjin and Chongqing to issue RMB bonds in Singapore and to repatriate the proceeds onshore;
(iii) equity investment funds in Suzhou, Tianjin and Chongqing to make direct investment in Singapore and the ASEAN region; and
(iv) individuals in Suzhou, Tianjin and Chongqing to conduct RMB remittances to settle current account transactions and direct investment in corporates in Singapore.