Singapore Exchange and China Construction Bank have signed a memorandum of understanding to promote Singapore's capital markets to Chinese companies.
Under the MOU, SGX and CCB will work closely on bringing Chinese companies to list in Singapore, especially through SGX's Direct Listing Framework. CCB is one of the issue managers accredited by SGX to assist companies in raising capital on the exchange, and as part of the MOU, will also advise its SGX-listed clients looking to tap the secondary market for further fund-raising.
SGX and CCB will also highlight opportunities for Chinese companies to issue offshore Renminbi bonds (Lion City Bonds), undertake mergers & acquisitions, establish cross-border asset management services and other capital market activities in Singapore. In addition, CCB will explore derivatives trading, bond trading and other business activities in Singapore.
The MOU was signed between Chng Lay Chew, Chief Financial Officer of SGX, and Xu Yiming, Chief Financial Officer of CCB.
Wang Hongzhang, Chairman of CCB, said, "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."
Loh Boon Chye, CEO of SGX, 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."
There are currently 120 Chinese companies and 103 RMB bonds listed on SGX.