Chinese shipbuilder Yangzijiang Shipbuilding will be the first renminbi-denominated stock to trade on the Singapore Exchange’s dual currency platform. Its shares will begin trading on 5 August.
This is the latest development in Singapore evolving role as an offshore RMB centre, with the listing, quotation, trading, clearing and settlement of RMB-denominated securities.
In addition, SGX has already begun listing and depository services for offshore RMB bonds. Also, SGX provides the China A50 index futures, the only offshore access to the China A-share market.
The move also signals a component of the growing currency ties between China and Singapore. The Monetary Authority of Singapore (MAS) has consulted recently with the markets over regulation of renminbi foreign exchange conversions.
In April, the People’s Bank of China (PBOC) signed a memorandum of understanding with the MAS to cooperate with renminbi-related issues. At that time, the PBOC also executed a renminbi clearing agreement with the Singapore branch of the Industrial and Commercial Bank of China.