The Monetary Authority of Singapore (MAS) and various Chinese financial entities have strengthened their partnership with a raft of new initiatives.
MAS, Singapore’s central bank and financial regulatory authority, plays a pivotal role in shaping the country’s financial landscape. On the other side, entities like the People’s Bank of China (PBCDCI) and the Shanghai Stock Exchange (SSE) are central players in China’s financial ecosystem, contributing significantly to its dynamic economic growth.
The core of this partnership revolves around enhancing digital finance and capital market cooperation. This initiative, stemming from the 19th Joint Council for Bilateral Cooperation, aims to streamline financial transactions and expand market accessibility between Singapore and China, fostering deeper economic ties.
MAS, renowned for its innovative approach in the financial sector, is spearheading the cross-border E-CNY pilot and other digital finance initiatives. Similarly, PBCDCI’s expertise in digital currency is crucial for the successful implementation of these projects. The Shanghai Stock Exchange’s collaboration with the Singapore Exchange to launch the ETF Product Link marks a significant step in expanding investment opportunities across borders.
Additional endeavors include an MOU between the Singapore Exchange and Guangzhou Futures Exchange focusing on green development, and preliminary talks between Singapore’s local banks and China’s UnionPay International exploring a potential remittance linkage. These initiatives complement the overarching goal of financial integration.
The China-Singapore Green Finance Task Force (GFTF) plays a vital role in promoting sustainable finance, further illustrating the breadth of this partnership. Their focus on green and transition financing underlines the commitment to not only economic growth but also environmental responsibility.
Mr Leong Sing Chiong, Deputy Managing Director (Markets and Development) at MAS, emphasized the significance of these initiatives: “It has been a fruitful year of financial cooperation between Singapore and China. MAS welcomes the new initiatives in digital finance and capital markets connectivity, as these will catalyse new financial flows between our financial centres, and deepen trade and economic relations between our economies.”
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