In a significant move to enhance financial collaboration, the Monetary Authority of Singapore (MAS) has unveiled a series of initiatives with China, announced at the 21st Joint Council for Bilateral Cooperation meeting in Chongqing. These initiatives aim to bolster the offshore Renminbi (RMB) market in Singapore and expand capital market opportunities for Chinese companies.
Among the key measures, DBS Bank has been appointed as Singapore’s second RMB clearing bank, joining the Industrial and Commercial Bank of China, which was designated in 2013. This appointment is expected to facilitate the use of RMB for trade and investment, aligning with regional economic needs.
Additionally, MAS and the China Securities Regulatory Commission have expressed support for secondary listings of A-share companies on the Singapore Exchange (SGX). This move will provide Chinese corporates with access to international capital, aiding their regional business expansion. The secondary listing framework will be extended to companies listed on the Shenzhen and Shanghai Stock Exchanges.
The initiatives also include the commencement of an over-the-counter bond market arrangement through Bank of China and DBS Bank, enhancing Singapore’s role as a fixed income hub. Furthermore, an e-CNY pilot will allow Singapore travellers to use e-CNY wallets for payments in China, starting from the end of 2025.
MAS Managing Director Chia Der Jiun remarked, “Over the years, the deepening financial connectivity between Singapore and China has supported the growth of cross-border trade and investment linkages between our economies.”
These developments mark a continued effort to strengthen financial ties between Singapore and China, with future implications for cross-border financing, FinTech innovation, and green finance cooperation.
