Singapore, Chongqing finance firms to sign 28 deals involving US$1.6b in transactions: MAS

A total of 28 agreements, involving transactions valued at over US$1.6 billion, will be signed on Friday between Singapore and Chongqing financial institutions, Ravi Menon, managing director at the Monetary Authority of Singapore (MAS) said.

Speaking at the Singapore-China (Chongqing) Financial Conference, Mr Menon said these agreements will mark the start of a new collaboration among the financial institutions, as well as specific financing deals in bond issuances and cross-border loans.

As of June this year, Singapore's financial sector has been involved in brokering close to US$4.5 billion in deals for Chongqing companies.

These included Chongqing Grain's issue of its first ever RMB-denominated Lion City bond in Singapore. The issuance attracted an overwhelming interest from offshore investors, leading to the subscription exceeding more than nine times its issuance value.

Mr Menon shared how Singapore can support the developmental objectives in the area of finance under the Chongqing Connectivity Initiative - the third government-led project between China and Singapore. The first was Suzhou Industrial Park in 1994, followed by Tianjin Eco-city in 2008.

He said many of the largest global fund managers operate out of Singapore as the gateway to Asia and China is one of their key investment destinations.

"Singapore and Chongqing can jointly provide a channel for overseas investors interested to access investment opportunities in China,'' he said.

At the same time, Chongqing can tap on Singapore's financial markets and access to international investors to catalyse developments in Chongqing's infrastructure finance, asset management and insurance sectors.