SGX, ICBC tie up to spur listings by Chinese firms in Singapore

SINGAPORE Exchange (SGX) has tied up with Industrial and Commercial Bank of China (ICBC) to promote its capital markets and support Chinese companies seeking to list on the local bourse.

A memorandum of understanding (MOU) between the two parties was signed on Monday and it is hoped it will provide support to Chinese companies looking to list equities or bonds on SGX, more specifically real estate investment trusts and offshore yuan bonds, said SGX in an announcement on Monday.

This support will include providing guidance on the listing process, listing rules as well as post-listing marketing support both in China and Singapore.

SGX and ICBC will also explore collaboration in derivatives trading, bond trading and market making of yuan-denominated contracts listed on SGX.

The MOU was signed between SGX head of equities and fixed income Chew Sutat and ICBC Singapore branch general manager Zhang Weiwu at an ICBC-hosted forum titled "Infrastructure Partnership and Financing in One Belt, One Road - Challenges and Opportunities".

The signing ceremony was witnessed by SGX chief executive Loh Boon Chye and ICBC chairman Yi Huiman.

Mr Chew said: "We look forward to working with ICBC to enhance the collaboration between China and Singapore's capital markets, supporting Chinese companies to raise capital and seek investment opportunities through Singapore, while also helping to further internationalise the RMB."

"As China's largest bank and Singapore's sole RMB-clearing bank, we are pleased to be working with SGX to encourage Chinese companies' participation in Singapore's capital markets, especially as Chinese companies continue to adopt an increasingly global outlook in their growth, expansion and funding prospects," said Mr Zhang.