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SGX to ink MOUs with two industry bodies to strengthen partnerships in China

TO further strengthen its ties with Chinese companies and markets, the Singapore bourse will be signing memoranda of understanding (MOUs) with the Zhejiang (S) Entrepreneurs Association (ZJEA), and the China Futures Association (CFA) later on Monday.

Through the MOU with the non-profit ZJEA, the Singapore Exchange (SGX) hopes to "foster greater collaboration in developing Singapore capital market opportunities for China enterprises", it said. The ZJEA has strong links with enterprises based in Zhejiang province and has a good reach to enterprises in other parts of China, the SGX added.

Meanwhile, the Singapore bourse will renew its partnership with the CFA with the MOU, which will see the two cooperate in the development of the derivatives markets in China and Singapore through financial market education and research. The partnership was first established in 2013.

About 20 per cent of listed companies and 15 per cent of bond issuers on the SGX are from Greater China. The listed companies have a market capitalisation of over S$206 billion, and bond issuers have an outstanding amount of S$294 billion to be paid out to bondholders.

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The signing ceremonies will take place at a gala dinner in Beijing to mark the 10th anniversary of the SGX's Beijing Representative Office. 

Loh Boon Chye, chief executive officer of SGX, said: “We are excited about the opportunities offered with China further internationalising, and the increasing role that it is playing within global capital markets. Together with our partners, we will continue to promote Singapore as a choice location for Chinese companies looking to expand their businesses internationally, as well as reinforce SGX’s role in facilitating the growing institutional investor demand for risk management tools and broader access to China.”

Li Guosheng, president of ZJEA, said: “SGX, as a gateway to international markets, is well positioned to help these entrepreneurs to compete on a global scale. This MOU between SGX and ZJEA will cement a close partnership between SGX and Zhejiang entrepreneurs in China.”

Wang Ming Wei, chairman of China Futures Association said: “2018 marks a year of rapid growth for China’s futures market. We are delighted to continue this collaboration which is not only an important milestone in our relationship with SGX, but will also further promote the derivatives market. With this shared mandate, we look forward to working closely with SGX in the coming years, to better serve our members and markets.”

SGX shares were down S$0.09 or 1.3 per cent at S$7.09 before entering the midday break.