The MAS unveiled a series of green finance and capital markets initiatives aimed at bolstering financial cooperation with China.
One of the key initiatives involves the China-Singapore Green Finance Taskforce (GFTF), which was established in 2023 in collaboration with the People’s Bank of China (PBC). The task force is set to enhance the Common Ground Taxonomy under the International Platform on Sustainable Finance’s framework to include the Singapore-Asia Taxonomy.
This integration, expected to conclude by the end of the year, will facilitate easier cross-border green loans, green bond issuance, and fund investments by aligning the green taxonomies of Singapore and China.
Additionally, MAS and the PBC are exploring a pilot to expand the “over-the-counter” bond market framework. This pilot aims to improve international investors’ access to China’s bond market through selected banks in Singapore, enhancing trading and custody services for fixed income products.
The ETF Product Links have also seen significant advancements, with MAS and the China Securities Regulatory Commission discussing an expansion in the suite of products offered. New ETF products and indices are being developed in collaboration with the Singapore Exchange (SGX) and China Securities Index, including a second index following the successful launch of the Emerging Asia Technology Index in January 2024.
In a notable development, the first Panda Bond was listed on the SGX by UOB, amounting to RMB 5 billion over three years. This listing underscores the growing interest and participation of international investors in the Panda Bond market. Further collaboration includes a Memorandum of Understanding between UOB and the Shanghai Gold Exchange to enhance trading and delivery of gold products.
Mr Chee Hong Tat, Minister for Transport and Second Minister for Finance, and Deputy Chairman of MAS, highlighted the importance of these initiatives, stating, “Financial cooperation has been a key pillar underpinning the strong bilateral relations between China and Singapore. The strong slate of initiatives announced today at the 20th anniversary of JCBC reflects our continued commitment to deepen financial connectivity between our markets.”
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