SGX, GF Securities to promote connectivity between Singapore, China capital markets

THE Singapore Exchange (SGX) has signed a memorandum of understanding with Chinese securities brokerage house GF Securities Corporation to promote greater connectivity between Singapore and China's capital markets, SGX said on Monday.

The two parties will expand GF Securities' reach and services in Singapore and the region. This includes building on its existing distribution of SGX's derivatives products, such as yuan futures, and facilitating access to the Singapore securities market.

GF Securities' wholly-owned subsidiary, GF Futures (Hong Kong), has been a derivatives trading member of SGX since 2011.

GF Securities will raise awareness of multi-asset investment opportunities in both markets, in particular SGX-listed real estate investment trusts and fixed income products, the bourse operator said.

It added that GF Securities has been participating in SGX's over-the-counter bond trading platform, and is looking to further increase its FX futures and commodity derivatives trading on the Singapore bourse, as well as promote the listing of fixed income products.

Another GF Securities unit, GF Securities (Hong Kong) Brokerage, plans to apply for SGX's securities trading membership to offer customers online brokerage services for SGX's securities products.

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SGX chief executive Loh Boon Chye noted that investors were increasingly adopting multi-asset strategies to achieve their investment objectives in the current low interest rate environment.

He added that the collaboration paves the way for GF Securities' clients to access SGX's range of investment products and opportunities, enhancing capital flows between China and Singapore.

GF Securities chairman and general manager Sun Shuming said "the agreement underlines our commitment to actively participate in the Belt and Road Initiative and marks a new step in our internationalisation efforts".

He added that stronger financial connectivity between China and Singapore not only enables Chinese enterprises and investors branching out overseas, but also introduces yuan assets to global investors.

SGX shares were trading at S$8.66, down S$0.05 or 0.6 per cent as at 1.47pm on Monday after the announcement.