SGX inks deal to help investors capture Belt and Road Initiative opportunities

The parties will develop an index for investors to track investment options related to the BRI.

The Singapore Exchange (SGX) has collaborated with financial services firm Nanhua Futures Co. to help investors capture investment opportunities related to China’s Belt and Road Initiative (BRI), an announcement revealed.

The BRI is the Chinese government’s long-term development strategy to connect 65 countries in Asia, Africa and Europe in terms of opening up new trade corridors and strengthening infrastructure and investment links. BRI economies account for one third of global gross domestic product (GDP) and trade, according to the World Bank Group.

Under the partnership, SGX’s index business SGX Index Edge will work with Nanhua Futures’ subsidiary Nanhua Fund to identify and develop indices and methodologies that are representative of China’s BRI.

“There are many ASEAN and China plays listed on SGX which are linked and poised to benefit from BRI,” SGX head of market data and connectivity Ng Kin Yee said. “These companies are from a variety of sectors including financials, energy, infrastructure, industrials, materials, consumer and IT.”

Additionally, SGX and Nanhua Futures will jointly conduct and promote equity research on Singapore stocks relevant and of interest to Chinese and international investors, the announcement highlighted.

Asides from helping global investors recognise opportunities, the parties aim to enable them to participate in the internalisation of China according to Nanhua Futures general manager Luo Xufeng.