SGX, CITIC Securities in Singapore-China markets tie-up

THE Singapore Exchange (SGX) and China securities firm CITIC Securities Company have signed a wide-ranging strategic cooperation agreement to collaborate across multiple areas.

These include fixed income, currencies and commodities, real estate investment trusts (Reits), as well as equity, debt capital markets and more, both parties said in a joint statement on Tuesday.

Together, SGX and CITIC Securities will promote SGX's Reits and large-capitalisation stocks in the mainland China and Hong Kong markets. They will also engage and educate Greater China companies on the advantages of raising funds in Singapore's capital markets.

CITIC Securities will contribute its expertise in Chinese government and financial bonds as well as asset-backed securities, while SGX will provide its debt securities platform.

Both sides will explore the feasibility of developing and listing new bond and risk management products for international participants looking to invest in China's bond market. The tie-up also seeks to build out the Reit platform with new products to enable greater investor participation in Singapore and Greater China.

CITIC Securities chairman Zhang Youjun said the agreement paves the way for both parties to deepen collaboration in areas like the overseas issuance of Chinese bonds, exchange-traded funds, capital market development projects, commodities and related derivative products.

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It also helps to augment SGX's prominence and reputation in China's capital markets, he added.

SGX CEO Loh Boon Chye said: "The ongoing pandemic has not dampened both parties' determination in working together to develop new financial products and support China's continuous internationalisation and opening of its financial markets."

The tie-up builds on SGX's and CITIC Securities' existing relationship. The latter's wholly-owned subsidiary CITIC Futures Co is a derivatives trading member of SGX. Another CITIC Securities subsidiary, CLSA Singapore, is a trading and clearing member of SGX.