Cross-border Renminbi Flows between Singapore and Chongqing
Singapore, 25 March 2016…The Monetary Authority of Singapore welcomed the move by the People’s Bank of China Chongqing Operations Office (PBC Chongqing) that will allow eligible corporates and individuals in Chongqing to conduct cross-border Renminbi (RMB) transactions with financial institutions and corporates in Singapore.
PBC Chongqing’s directive issued today implements one of the agreed outcomes in financial co-operation between China and Singapore during the State Visit to Singapore in November 2015 by the President of the People’s Republic of China, Mr Xi Jinping.
PBC Chongqing’s directive will allow: (i) corporates in Chongqing to issue RMB bonds in Singapore and repatriate the funds raised in full. In addition to Chongqing, the funds raised can be used outside of the municipality for the development of economic activities and infrastructure in China’s western region1; (ii) equity investment funds in Chongqing to make direct investments outside of China, including Singapore and the ASEAN region; (iii) individuals in Chongqing to make RMB remittances to Singapore to settle current account transactions.
The initiative will facilitate greater use of RMB in the region and contribute to the growth of the offshore RMB market in Singapore. It will also strengthen financial connectivity between Chongqing and Singapore. This will be useful in achieving the objective of enhancing modern connectivity and services in China’s western region under the China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity, announced in November 2015.
1 This includes the 6 provinces (Gansu, Guizhou, Qinghai, Shaanxi, Sichuan, and Yunnan), 5 autonomous regions (Guangxi, Inner Mongolia, Ningxia, Tibet, and Xinjiang) and 1 municipality (Chongqing) in the western part of China.