SGX ups RMB offerings
In response to increasing global demand
for RMB products, the Singapore Exchange (SGX) has increased its ability to
offer instruments denominated in the Chinese currency.
The exchange said it was now ready to list, quote, trade,
clear and settle RMB-denominated securities.
Singapore’s initiative will stimulate issuer and investor opportunities who want to participate in the
internationalisation of the RMB. SGX’s addition of RMB securities trading adds
to its existing offshore RMB listed bonds.
Issuers listing RMB securities on SGX can choose to offer
dual-currency trading, providing investors with the ability to trade the
security either in RMB or Singapore dollars.
“SGX, as the Asian Gateway, is committed to being the
exchange of choice for issuers with RMB fund-raising needs and for investors
who are keen to participate in the China growth story. The listing and trading
of RMB securities on SGX will also extend Singapore’s position as an offshore
RMB centre,” said Magnus Bocker, CEO of SGX.
Singapore’s move comes as competition in RMB product
offerings heat up in Asia. Earlier this week, Hong Kong’s Securities and
Futures Commission (SFC) approved the first renminbi qualified foreign
institutional investor A-share ETF for listing on the Hong Kong
HKEx is currently preparing to list the first
exchange-traded RMB-denominated sovereign bonds on its market and will being
trading RMB currency futures in Q3.
The SFC also this week welcomed the move by the China
Securities Regulatory Commission to allow ETFs that track a Hong Kong stock
index to be listed on the Shanghai and Shenzhen stock exchanges.