Financial connectivity between Singapore and the Western Region of China strengthens amid global economic headwinds
Chongqing, 20 April 2023… Financial connectivity between Singapore and the Western Region of China has continued to grow despite challenging global economic and financial conditions. In 2022, the China-Singapore (Chongqing) Connectivity Initiative (CCI) catalysed about US$6 billion in cross-border financing deals from the Western Region, bringing the total value of deals facilitated since the CCI’s inception in 2015 to over US$29 billion.
2.Mrs Josephine Teo, Minister for Communications and Information and Second Minister for Home Affairs, who delivered the keynote remarks at the 5th China-Singapore (Chongqing) Connectivity Financial Summit, highlighted the growing presence of Singapore financial institutions in ChongqingThis includes our local banks, DBS, UOB and OCBC, which have branches in Chongqing. Private equity firms CMIA Capital Partners and ICHAM Private Limited have also set up fund management entities in Chongqing., which has added further vibrancy to Chongqing’s financial landscape. Mrs Teo also outlined how greater financial cooperation and connectivity between Singapore, Chongqing and ASEAN would have a positive effect on increasing trade flows and cross-border investments across the region.
3.In his opening address, Mr Ravi Menon, Managing Director of the Monetary Authority of Singapore (MAS), said that central banks will need to remain vigilant to tackle current challenges in the global financial system. Mr Menon also highlighted financial markets connectivity as well as green and transition finance as two important long-term imperatives for China and Singapore. He suggested leveraging the CCI platform and Chongqing’s green financial reform and innovation pilot zone to incubate initiatives that can scale up green financial flows between Singapore and China’s western region.
4.Seventeen Memoranda of Understanding (MOUs) between Singapore and Chongqing corporates and financial institutions were inked during the Summit. The MOUs cover cooperation in a range of areas relating to cross-border financing, FinTech and talent development. Mr Menon and Mr Hu Henghua, Mayor of Chongqing Municipality, witnessed the signing. (Please see Annex A for list of MOUs).
5. The Summit continues tomorrow, with panel sessions involving ASEAN central bank representatives and financial sector leaders on key areas of mutual interest between the Western Region of China and ASEAN, such as cross-border financial connectivity, green finance, and FinTech.
6.The CCI Financial Sub-Committee Advisory Group (CAG)Established in June 2020, the CAG comprises C-level executives from key financial institutions, financial intermediaries, and FinTech entities to help drive Singapore-Chongqing financial collaboration., which has been renewed for a second term, will hold its third meeting tomorrow. CAG will discuss ideas to catalyse green finance cooperation under the CCI, and identify potential opportunities to strengthen regional financial cooperation between ASEAN and Chongqing. (Please see Annex B for the list of members).
About the Summit
The China – Singapore (Chongqing) Connectivity Initiative Financial Summit is the signature event under the Financial Services pillar of the China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity. The two-day Summit focuses on opportunities to deepen financial collaboration between Singapore and Chongqing, and between ASEAN and Western China. Attendees of the Summit include representatives from central banks, financial institutions and corporates from across ASEAN and Chinese policymakers and financial institutions.
The Summit is co-organised by the Singapore Ministry of Trade and Industry, the Monetary Authority of Singapore, the Ministry of Commerce of the People’s Republic of China, the People’s Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange of the People’s Republic of China, and the Chongqing Municipal People’s Government.
The China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity (CCI) is the third Government-to-Government collaboration project between Singapore and China. Cooperation under the CCI covers four areas: (i) Financial Services; (ii) Aviation; (iii) Transport and Logistics; and (iv) Information and Communications Technology. The vision for the Financial Services pillar is to promote Singapore-Chongqing connectivity and innovation in Financial Services to facilitate economic transformation in Western China.