Singapore Exchange Limited (SGX) and China Construction Bank (CCB) Corporation reached an agreement and signed a memorandum of understanding (MoU) on Monday, which is about to promote Singapore’s capital markets to Chinese companies.
According to this agreement, Singapore Exchange and CCB will cooperate to bring Chinese companies to Singapore Exchange list, mostly in the way of SGX’s Direct Listing Framework. CCB is one of the issue managers, accredited by SGX to assist companies in raising capital on the exchange. Moreover, the MoU states that CCB will also advise its SGX-listed clients looking to try the secondary market for further fund-raising.
Singapore Exchange and CCB will also provide further opportunities for Chinese companies like issuance of offshore Renminbi bonds (Lion City Bonds), undertaking mergers & acquisitions, establish cross-border asset management services and any other capital market activities in Singapore. On top of that, CCB will explore derivatives trading, bond trading and other business activities in Singapore.
Chairman of CCB, Wang Hongzhang stated,
“This MOU marks a significant milestone in our collaboration and while we will continue to work seamlessly with SGX to bring Chinese companies to tap funds from the capital markets here in Singapore, we are also very excited by the prospect of co-operating with SGX in other areas of mutual interest.”
CEO of Singapore Exchange, Loh Boon Chye said,
“We are pleased to partner CCB to highlight the opportunities our fund raising platforms can offer to Chinese companies, including access to a global investor base. We also look forward to further collaboration with CCB in derivatives clearing and settlement.”
During these days, there are already 120 Chinese companies and 103 RMB bonds listed on Singapore Exchange.
For reading the full announcement about the agreement, you can click here.
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