Singapore and China have announced a new set of financial initiatives, including the appointment of DBS Bank as Singapore’s second renminbi clearing bank and the launch of an e-CNY pilot for Singapore travellers.
The Monetary Authority of Singapore (MAS) said DBS’ appointment would support further growth of Singapore’s offshore renminbi market.
The Industrial and Commercial Bank of China’s Singapore branch has served as the city-state’s first RMB clearing bank since 2013.
The move is expected to facilitate the use of the Chinese currency for trade, investment and other economic activities in line with regional needs.
The e-CNY pilot will allow Singapore travellers to open and top up digital yuan wallets locally for merchant payments in China.
The service will be rolled out in phases from the end of 2025 through the Singapore branches of ICBC and Bank of China, and is intended to complement other linkages to enhance payment convenience for travellers.
Measures extend to listings, bonds and investment products
The two sides expressed support for A-share companies listed in Shanghai and Shenzhen to pursue secondary listings on the Singapore Exchange.
MAS and the China Securities Regulatory Commission said the secondary listing framework would be extended to enable access to international capital and additional funding channels for regional business expansion.
Bank of China and DBS will also commence an over-the-counter bond market arrangement allowing designated banks in Singapore to offer institutional investors access to selected products on the China Interbank Bond Market.
MAS said the initiative reinforces Singapore’s role as a gateway for Asian investment opportunities.
The Singapore regulator also signed an updated memorandum of understanding with the Chongqing Municipal People’s Government under the China-Singapore Chongqing Connectivity Initiative to mark its 10th anniversary.
The agreement covers cooperation in cross-border financing and investments, fintech innovation and green finance to facilitate financial services between China’s western region, Singapore and ASEAN.
Chia Der Jiun, Managing Director of MAS, said,
“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.
We look forward to building on this momentum, through our new initiatives and the continued partnerships between our financial institutions in banking and capital markets.”
The measures were announced by the Monetary Authority of Singapore at the 21st Joint Council for Bilateral Cooperation meeting in Chongqing, co-chaired by Singapore Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong and China’s Vice Premier Ding Xuexiang.
Featured image: Edited by Fintech News Singapore, based on images by leoaltman and leoaltman via Freepik
