The Singapore Exchange and Bank of China have signed a memorandum of understanding to cooperate in growing China's financial markets.
Under the MOU, SGX and BOC will explore joint development of Renminbi products and services, promotion of SGX products in China and educational programs. BOC will also look into expanding its role in SGX's markets.
Singapore is a leading offshore RMB center outside Greater China and the world's third-biggest center for foreign exchange trading. Recent SGX initiatives in support of Singapore's ambitions as an offshore RMB center include the start last month of trading of RMB securities and the May launch of depository services for RMB bonds. Over 1,400 bonds are listed on SGX of which 6% are denominated in RMB.
"We are delighted to partner Bank of China in growing the markets of the world's second-biggest economy. With this partnership, our customers can benefit from greater access to China and more tools to manage their risks. We look forward to more of such collaborations as we continue to strengthen and enhance SGX as the Asian Gateway," said Magnus Bocker, CEO of SGX.