MAS awards qualifying full bank licence to China Construction Bank

THE Monetary Authority of Singapore (MAS) has awarded a qualifying full bank (QFB) licence to China Construction Bank, under the China-Singapore Free Trade Agreement Upgrade Protocol, it said on Tuesday.

In its press statement, MAS also said that Zhengzhou Commodity Exchange has been awarded recognition as a recognised market operator, allowing investors in Singapore access to the commodity derivatives markets in China.

The announcements follow China Securities Regulatory Commission's approval for the establishment of DBS Securities (China) in August this year.

China Construction Bank said in a statement on Tuesday that the QFB licence allows for greater operational privileges offering a full suite of banking products that are permitted under the Banking Act.

The bank set up a representative office in Singapore in 1993, before officially commencing operations as a branch in March 1998.

"With the award of the QFB licence, the branch will be focusing its efforts in establishing a commodity trade financing centre, investment banking transaction centre and fintech innovation centre in Singapore," it said, adding that these, together with its existing infrastructure-financing service centre and private-banking centre, will be the main driving forces for future growth.

Singapore and China also discussed on Tuesday initiatives to enhance financial cooperation during the 16th Joint Council for Bilateral Cooperation (JCBC) meeting between the two countries.

These initiatives include digital finance, green finance, cooperation between Singapore and Chinese exchanges and RMB (renminbi) cooperation.

The JCBC was co-chaired by Singapore's Deputy Prime Minister and Finance Minister Heng Swee Keat, and China's Executive Vice-Premier of the State Council Han Zheng.

"Financial services will play a critical role in facilitating a post-Covid-19 economic recovery," said Jacqueline Loh, deputy managing director of MAS. She added that RMB internationalisation and the further opening of China's capital markets are two key trends shaping Asia's financial services landscape over the medium term.

"Singapore can play a useful role in this transformation, while supporting bilateral growth, and trade and investments between China and Singapore."