Singapore Exchange Limited (SGX:S68) and China Construction Bank Corporation (SHA:601939) today sealed a memorandum of understanding (MoU), seeking to promote Singapore’s capital markets to Chinese companies.
Under the agreement, SGX and CCB will collaborate to bring 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. As a part of the MoU, CCB 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. On top of that, CCB will explore derivatives trading, bond trading and other business activities in Singapore.
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.”
At present, there are 120 Chinese companies and 103 RMB bonds listed on SGX.
You can view the full announcement on the collaboration by clicking here.