The Singapore Exchange (SGX) is making further steps to win business from China’s markets. SGX and the Bank of China (BOC) have signed a memorandum of understanding whereby they will cooperate in furthering the growth of China’s financial markets.
They will explore the joint development of renminbi products and services, and the promotion of SGX products in China. BOC will also look into expanding its role in SGX’s markets.
Singapore is a leading offshore renminbi centre outside Greater China. In August, SGX started listing Chinese stocks denominated in renminbi.
It has also been successful in futures trading via its China A50 futures product, which represents 50 listed companies in China. Volume has tripled with that product during the last year to 1.7 million contracts.
In contrast, mainland China’s own China Financial Futures Exchange offers just one futures product, CSI 300 index futures, which has been available since 2010.
In May 2013 depository services for renminbi bonds was introduced. Over 1,400 bonds are listed on SGX of which 6% are denominated in the Chinese currency.
In April 2013, China’s central bank, the People’s Bank of China, signed an understanding with the Monetary Authority of Singapore on the subject of cooperation with respect to the renminbi. The PBOC also executed a renminbi clearing agreement with the Singapore branch of the Industrial and Commercial Bank of China.