Singapore banks ink agreements with Chongqing government to promote cross-border trade

THE Singapore banks on Friday said they have signed agreements with the Chongqing government to promote cross-border trade and investment between Chongqing and South-east Asia, including Singapore. DBS's agreements also include tie-ups with the Chinese banks and financial institutions.

Under a memorandum of understanding (MOU) signed each with the financial affairs office of the Chongqing Municipal People's Government, OCBC and UOB will work with the government agency to help companies based in Chongqing to tap on the South-east Asia market.

DBS separately signed two tripartite agreements with the Chongqing municipal government, one with the Industrial and Commercial Bank of China (ICBC), and another with China Construction Bank Corporation (CCB) - with the banking partners looking at financing services, and sharing resources.

It also signed two bilateral agreements with two partners: the Chongqing Liangjiang New Area Administrative Committee, and the Chongqing Yufu Asset Management Group. According to DBS, the latter two agreements will prioritise DBS as the main bank for financing needs.

UOB said its branch in Chongqing has doubled its wholesale banking customer base since its launch in September 2014.

In a media statement, Eric Lian, chief executive officer of UOB (China), said Singapore will play a key role by being a gateway city for Chinese companies expanding into South-east Asia. "Chongqing is a key city in the development of western China. We believe that it will be a major beneficiary of trade connectivity initiatives such as the One Belt One Road aimed at increasing economic cooperation between China and its trading partners in South-east Asia."

Chongqing was selected as the location of the third Sino-Singapore bilateral project, following from the Suzhou Industrial Park and the Tianjin Eco-City projects.

OCBC China's CEO, Kng Hwee Tin, said: "The MOU we inked today reflects our belief in the economic promise that Chongqing holds and our continued efforts to harness opportunities arising from macro developments in the Greater China region."