Singapore and China tighten trading links with agreement

SGX signs agreement with Chinese bank to give companies in the region support when listing equities and bonds on the exchange.

Singapore and China have entered into an agreement supporting Chinese companies listing equities and bonds on the Singapore Exchange (SGX).

Chinese companies listing on SGX will gain guidance on the process, rules and post-listing marketing support in both China and Singapore.

SGX and the Industrial and Commercial Bank of China (ICBC) signed the ‘memorandum of understanding’, which will also promote Singapore’s capital markets. 

Both parties will collaborate on derivatives and bond trading, and market making of renminbi denominated contracts listed on SGX.

Chew Sutat, head of equities and fixed income at SGX, signed the agreement alongside Zhang Weiwu, general manager of ICBC’s Singapore branch.

Sutat explained the agreement will “support Chinese companies to raise capital and seek investment opportunities through Singapore.”

Weiwu added it will also encourage Chinese companies’ participation in Singapore’s capital markets.