The United Kingdom (UK) and Singapore held the 7th UK-Singapore Financial Dialogue in Singapore today. Both countries renewed their commitment to deepening the UK-Singapore Financial Partnership that was agreed in 2021, discussed mutual priorities such as sustainable finance, FinTech and innovation, and agreed on further cooperation in these areas.
Singapore and China expand financial cooperation to support post-COVID-19 recovery
Singapore, 8 December 2020… The Monetary Authority of Singapore (MAS) today announced initiatives to enhance financial cooperation between Singapore and China. These measures will build on existing areas of collaboration and facilitate financing and investment activities in support of a post-COVID-19 recovery in Singapore and China.
2 The initiatives were discussed at the 16th Joint Council for Bilateral Cooperation (JCBC) between Singapore and China, co-chaired by Singapore Deputy Prime Minister, Coordinating Minister for Economic Policies and Minister for Finance, Mr Heng Swee Keat, and People’s Republic of China Executive Vice Premier of the State Council, Mr Han Zheng.
3 The initiatives include:
- RMB Cooperation – MAS recently launched a new RMB 25 billion initiative to enhance RMB market liquidity, through MAS’ money market operations. This initiative will better meet the RMB financing and hedging needs of corporates in Singapore and the region.
- Cooperation between Singapore and Chinese Exchanges – MAS and the China Securities Regulatory Commission (CSRC) are facilitating efforts by Singapore and Chinese exchanges to collaborate in new areas such as exchange traded funds.
- Digital Finance – MAS and the People’s Bank of China will strengthen cooperation in digital finance to support tourism, trade and e-commerce between our countries.
- Green Finance – MAS will work with Chinese central and provincial counterparts to broaden cooperation in green finance.
4 In addition, MAS announced the award of the following:
- A qualifying full bank (QFB) licence to China Construction Bank, under the China-Singapore Free Trade Agreement Upgrade Protocol.
- Recognition of Zhengzhou Commodity Exchange as a recognised market operator, allowing investors in Singapore access to the commodity derivatives markets in China.
These announcements follow CSRC’s approval in August this year for the establishment of DBS Securities (China) Limited, a securities joint venture in China, providing customers in China greater access to international capabilities and offerings.
5 Ms Jacqueline Loh, Deputy Managing Director of MAS, said, “Financial services will play a critical role in facilitating a post-COVID-19 economic recovery. At the same time, RMB internationalisation and the further opening up of China’s capital markets are two key trends shaping Asia’s financial services landscape over the medium term. Singapore can play a useful role in this transformation, while supporting bilateral growth, and trade and investments between China and Singapore.”