The agreement will further help Chongqing companies access international capital funding for expansion.
The Singapore Exchange (SGX) signed a new strategic cooperation agreement with the China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity (CCI) Administrative Bureau in a bid to further support Singapore-China financial cooperation, an announcement revealed.
The CCI is the third inter-governmental project between the two countries and builds on the existing partnerships between the SGX and the state-owned Assets Supervision and Administration Commission (SASAC) that aims to help Chongqing companies access international capital funding for business expansion.
According to SGX, the agreement will facilitate access to cross-border financial services for firms in Western China, as well as support Chongqing’s role in opening up business opportunities under the CCI.
“As both China and Singapore governments work towards greater connectivity between Western China and Southeast Asia, the need for more international capital will grow,” SGX’s executive VP and head of equities and fixed income Chew Sutat said in a statement.
Of the 740 companies listed on the SGX, over 100 originate from Greater China and make up roughly 20% of the market capitalisation of companies listed in Singapore, the statement revealed. About 15% of bond issuers on SGX are also from Greater China.
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