United Overseas Bank, Singapore Exchange, and the China Chamber of International Commerce agree to help Chinese enterprises use Singapore as a launch pad into the region.

Under the new Memorandum of Understanding (MOU), more than 180,000 Chinese enterprises under CCOIC can benefit from United Overseas Bank (UOB)'s banking expertise and integrated ASEAN network, as well as from Singapore Exchange's (SGX) capital market infrastructure and deep liquidity to venture into Singapore and Southeast Asia, the bank said in a media statement on Sunday. 

«UOB is committed to providing companies the connectivity they need for their business expansion across Asia. For enterprises seeking opportunities in ASEAN, we have been helping them navigate market complexities and offering financial and business support through our integrated network, strong knowledge of and experience in the local markets and our ecosystem of strategic partners,» said Wee Ee Chong, CEO of UOB in a media release on Sunday.

Offering Singapore's Debt and Equity Capital Markets

UOB, SGX, and CCOIC will help Chinese enterprises capitalize on Singapore’s debt and equity capital markets, as well as Singapore’s role as a regional treasury hub and global financing center for foreign investments. Each organization will provide assistance and advisory services in relation to market entry and corporate actions such as debt and equity listing and asset securitization.

«SGX’s multi-asset fundraising, investment and risk management platforms, when placed together with UOB’s financial expertise and CCOIC’s extensive network in the Chinese business community, will add value to enterprises tapping on the growth opportunities led by China’s Belt and Road and environmental initiatives,» said Loh Boon Chye, CEO of SGX.

Strategic Location in ASEAN

«Chinese enterprises can also benefit from Singapore’s position as a global wealth management hub and overseas RMB center while leveraging our strategic location in ASEAN as a springboard into one of the world’s fastest-growing regions,» added Loh.

Each organization will provide assistance and advisory services in relation to market entry and corporate actions such as debt and equity listing and asset securitization. They will also provide support in their respective areas such as trade settlement, project financing, liquidity management, foreign exchange, and derivatives transactions, and connect Chinese enterprises to potential business partners across ASEAN. 

Increased Cross-Border Flows

Last year, UOB helped 50 percent more Chinese companies expand into ASEAN compared with 2017. This resulted in a 31 percent increase in cross-border business flows over the same period, the bank said.

The MOU signing was in conjunction with the second Belt and Road Forum in Beijing and was witnessed by Singapore's Minister for Trade and Industry Chan Chun Sing, and Senior Minister of State for Trade and Industry Koh Poh Koon.