SGX and BOC partner to grow China markets
Focusing on RMB products and services.
In a release over the weekend, Singapore Exchange (SGX) and Bank of China (BOC) announced that they have signed a memorandum of understanding (MOU) to cooperate in growing China’s financial markets.
Under the MOU, SGX and BOC will explore joint development of Renminbi products and services, promotion of SGX products in China and educational programmes. BOC will also look into expanding its role in SGX’s markets.
Singapore is a leading offshore RMB centre outside Greater China and the world’s third-biggest centre for foreign exchange trading. Recent SGX initiatives in support of Singapore’s ambitions as an offshore RMB centre include the start last month of trading of RMB securities and the May launch of depository services for RMB bonds. Over 1,400 bonds are listed on SGX of which 6% are denominated in RMB.
Bank of China Chairman Tian Guoli said, “As one of China’s largest commercial banks, Bank of China is committed to promoting the internationalisation of the Renminbi and related products and services for our clients to help them grow internationally. This collaboration with SGX affirms our commitment to Singapore’s financial markets, particularly the securities and derivatives exchanges, and to giving our clients access to opportunities in Asia’s growing economies.”
“We are delighted to partner Bank of China in growing the markets of the world’s second-biggest economy. With this partnership, our customers can benefit from greater access to China and more tools to manage their risks. We look forward to more of such collaborations as we continue to strengthen and enhance SGX as the Asian Gateway,” said Magnus Böcker, CEO of SGX.