DBS partners Shanghai energy exchange to boost globalisation of China energy futures trading

DBS Bank on Tuesday said it signed an agreement to work with Shanghai International Energy Exchange (INE) to boost the internationalisation of China's energy futures exchange market.

The deal was inked in Shanghai on Monday. DBS is the first foreign bank in China to forge a strategic alliance with the exchange. DBS and INE will leverage their respective strengths and business resources to collaborate in areas such as settlement, risk management, international client servicing and product innovation, DBS said.

At the signing ceremony, Chu Juehai, president and CEO of INE said: "With the shift in the demand-supply equilibrium of the global energy market, Asia Pacific has become an important spot energy market, prompting the need to develop an influential energy futures exchange and pricing market.

"INE strives to develop an efficient, equitable and safe international energy derivatives trading platform to form an Asia-Pacific pricing centre which is linked to the European and American markets to facilitate 24 hours trading for risk management.

"This will ensure the healthy development of Asia-Pacific economies and to facilitate efficient and timely pricing risk management by global investors."

Neil Ge, CEO of DBS Bank (China) also said the bank will offer a full range of commodities financing, including customised trade financing, cash and risk management solutions to INE's clients and corporates with the help of its Singapore, Hong Kong, Shanghai and London teams.

The INE, set up in November last year, will handle energy futures trading within the pilot Shanghai Free Trade Zone. It is the fifth national futures exchange approved by the China Securities Regulatory Commission.