UOB, SGX ride on China's expansion into Asean
Singapore
UOB and the Singapore Exchange (SGX) will work with the China Chamber of International Commerce (CCOIC) to have more Chinese enterprises use Singapore as a launchpad to expand into Asean. The partnership was inked under a fresh memorandum of understanding signed in conjunction with the second Belt and Road Forum in Beijing.
The signing on Saturday was witnessed by Chan Chun Sing, Singapore Minister for Trade and Industry, and Koh Poh Koon, Senior Minister of State for Trade and Industry.
UOB said in 2018, the number of Chinese companies that it had partnered on Asean expansion plans rose 50 per cent from a year ago. This support resulted in a 31 per cent increase in cross-border business flows over the same period, it added.
Against this backdrop, the tripartite alliance builds on UOB's existing collaboration with CCOIC to facilitate Chinese enterprises' internationalisation efforts, UOB said in a joint media statement with the SGX.
UOB and SGX will be able to engage with more than 180,000 Chinese enterprises in CCOIC's network.
UOB, SGX and CCOIC will work together on drawing Chinese enterprises to this region, by capitalising on Singapore's debt and equity capital markets, UOB and SGX said.
They noted that the partnership could tap on Singapore's role as a regional treasury hub and global financing centre for foreign investments.
The partnership will mean assistance and advisory services in areas of market entry and corporate actions such as debt and equity listing and asset securitisation.
UOB and SGX will also provide respective support in trade settlement, project financing, liquidity management, foreign exchange and derivatives transactions, as well as connect Chinese enterprises to potential business partners across Asean.
In the press statement, Yu Jianlong, secretary general of CCOIC, was quoted as saying that CCOIC has been "actively working" with international organisations to facilitate the overseas expansion of Chinese enterprises.
"We are pleased to form an alliance with two of Singapore's leading financial institutions - SGX and UOB - to help Chinese enterprises access the country's established financial market and stable business environment as a gateway for their Asean expansion. Together, we will contribute to the strengthening of bilateral economic and trade relations and growing connectivity across the region."
Wee Ee Cheong, deputy chairman and CEO of UOB, said: "UOB is committed to providing companies the connectivity they need for their business expansion across Asia.
"For enterprises seeking opportunities in Asean, we have been helping them navigate market complexities and offering financial and business support through our integrated network, strong knowledge of and experience in the local markets and our ecosystem of strategic partners."
Loh Boon Chye, CEO of SGX, said: "SGX's multi-asset fundraising, investment and risk management platforms, when placed together with UOB's financial expertise and CCOIC's extensive network in the Chinese business community, will add value to enterprises tapping on the growth opportunities led by China's Belt and Road and environmental initiatives."
