Singapore and China Strengthen Cooperation in Green Finance and Capital Market Linkages
Singapore, 1 November 2022…The Monetary Authority of Singapore (“MAS”) today announced new initiatives to expand cooperation in green finance and deepen capital market linkages with China. The initiatives were discussed at the 18th Joint Council for Bilateral Cooperation (“JCBC”) in Singapore, co-chaired by Singapore Deputy Prime Minister and Coordinating Minister for Economic Policies, Mr Heng Swee Keat, and People’s Republic of China Executive Vice Premier of the State Council, Mr Han Zheng.
2 The initiatives are:
- China – Singapore Green Finance Taskforce (“Taskforce”). MAS and the People’s Bank of China will establish a Taskforce to deepen bilateral cooperation in green finance and facilitate greater public-private sector exchanges to better mobilise private capital for the region’s sustainable development needs. The Taskforce will explore collaboration in areas such as standards and definitions, green and transition financing solutions, data and technology enablers to catalyse green financing flows, and enhance green investment opportunities in China and the region.
- Exchange Traded Funds (“ETF”) Product Link. The Singapore Exchange (“SGX”) and Shenzhen Stock Exchange (“SZSE”) will welcome the first three participating ETFs under the ETF Product Link
The ETF Product Link operates via a master-feeder structure. A feeder ETF listed on SGX will invest more than 90% of its assets into the master Target ETF listed on SZSE. Conversely, a feeder ETF listed on SZSE will invest more than 90% of its assets into the master Target ETF listed on SGX.by year-end. These participating ETFs are launched under collaborations between China Southern Asset Management and CSOP Asset Management Singapore, as well as between Ping An Fund Management Company and United Overseas Bank Asset Management. This ETF Product Link will allow investors in China and Singapore to access ETF investment opportunities in each other’s markets.
- Low Carbon Index Family by Chinese and Singapore Exchanges. The SGX, Shanghai Stock Exchange and SZSE will jointly launch a Low Carbon Index Family by year-end, that will serve as a benchmark for fund managers to launch new green funds focused on China, ASEAN and other countries in Asia. This will raise investor interest in green investment opportunities in our region, and channel capital towards the region’s leading sustainable firms.
3 Mr Leong Sing Chiong, Deputy Managing Director (Markets and Development), MAS, said, “The launch of the Green Finance Taskforce is very timely, as finance plays a key role in catalysing our transition to a more sustainable future. This collaboration in green finance builds on earlier initiatives to strengthen RMB and capital market connectivity. MAS will continue to work closely with our central bank and regulatory counterparts in China to deepen our financial cooperation and unlock new growth drivers for our economies.”
Opening Remarks by Mr Ravi Menon, Managing Director of MAS, at the 25th Anniversary Celebration of IMF-Singapore Regional Training Institute
The partnership will focus on finding ways to better mobilise financing to make digital services more affordable and accessible for underserved individuals and communities, and MSMEs, with the support of financial institutions and FinTech companies.
Mr Ravi Menon, Managing Director, MAS, spoke on MAS' efforts to build three foundational digital infrastructures, as well as MAS’ collaboration with UNDP to maximise opportunities for MSMEs.