Singapore and China Enhance Digital Finance and Capital Markets Cooperation

The Monetary Authority of Singapore (MAS) has issued a press release in which it informs of a series of strategic initiatives aimed at deepening cooperation in digital finance and capital markets with China. These initiatives were deliberated upon during the 19th Joint Council for Bilateral Cooperation meeting, co-chaired by Singapore’s Deputy Prime Minister and Minister for Finance, Mr. Lawrence Wong, and China’s Executive Vice Premier of the State Council, Mr. Ding Xuexiang.
The (upcoming) initiatives include the following:
Cross-border E-CNY pilot: MAS and China’s Digital Currency Institute are launching a pilot program enabling travelers from both nations to utilize e-CNY, a digital Remnibi, for transactions in Singapore and China, streamlining financial activities during international travel.
ETF product link launch: Based on an agreement between the Singapore Exchange (SGX) and Shanghai Stock Exchange (SSE) concluded in May this year which facilitates cross-border listing of Exchange Traded Funds (ETFs), a first set of ETFs were successfully introduced in each others market on December 1, 2023. This launch is an important step towards enhancing investor access to ETFs across respective markets.
Agreement between SGX and Guangzhou Futures Exchange (GFEX): The SGX and GFEX recently signed a Memorandum of Understanding to enhance their cooperation. The MoU encompasses the exchange of information, joint product research, and joint initiatives to explore green business development.
Potential remittance linkage: Early-stage discussions are underway between Singapore’s local banks and China’s UnionPay International to explore a potential remittance linkage between PayNow and UnionPay with the objective of facilitating secure and cost-effective cross-border payments and remittances.
Green finance initiatives: Under the China-Singapore Green Finance Task Force, MAS and the People’s Bank of China are actively engaged in initiatives such as establishing a green corridor for financing products and capacity building to promote green and transition finance.