Singapore and China Expand Green Finance and Capital Market Cooperation
The Monetary Authority of Singapore (MAS) announced new plans to deepen ties with China in the capital markets and increase cooperation in green finance.
The 18th Joint Council for Bilateral Cooperation (JCBC) was held in Singapore. It was led by Mr. Heng Swee Keat, Singapore's Deputy Prime Minister and Coordinating Minister for Economic Policies, and Mr. Han Zheng, Executive Vice Premier of the State Council of the People's Republic of China.
The initiatives are:
China – Singapore Green Finance Taskforce. To better mobilise private capital for the region's sustainable development requirements, MAS and the People's Bank of China will form a Taskforce to expand bilateral cooperation in green finance and facilitate stronger public-private sector exchanges. The Taskforce will look into ways to collaborate in areas such as standards and definitions, green and transition financing solutions, data and technology enablers, and green investment prospects in China and the region.
Exchange Traded Funds (ETF) Product Link. By the end of the year, the Singapore Exchange (SGX) and Shenzhen Stock Exchange (SZSE) will welcome the first three participating ETFs under the ETF Product Link. Collaborations between China Southern Asset Management and CSOP Asset Management Singapore, as well as Ping An Fund Management Company and United Overseas Bank Asset Management, have resulted in the development of these participating ETFs. This ETF Product Link will give Chinese and Singaporean investors access to ETF investment options in each other's markets.
Low Carbon Index Family by Chinese and Singapore Exchanges. By the end of the year, the SGX, Shanghai Stock Exchange, and SZSE will collaborate to develop a Low Carbon Index Family, which will serve as a benchmark for fund managers launching new green funds focused on China, ASEAN, and other Asian countries. This will increase investor interest in green investment prospects and direct funds to the region's best sustainable businesses.
Mr Leong Sing Chiong, Deputy Managing Director (Markets and Development), MAS, said:
“The launch of the Green Finance Taskforce is very timely, as finance plays a key role in catalysing our transition to a more sustainable future. This collaboration in green finance builds on earlier initiatives to strengthen RMB and capital market connectivity. MAS will continue to work closely with our central bank and regulatory counterparts in China to deepen our financial cooperation and unlock new growth drivers for our economies.”