Select Singapore Banks to be Authorized to Offer Chinese Bonds
Select lenders in Singapore will be authorized to provide trading, settlement and custody services for Chinese interbank bonds on behalf of foreign investors.
The agreement to create such a cooperation mechanism and further the internationalisation of the Chinese yuan was made between the Monetary Authority of Singapore and the People’s Bank of China.
Currently, DBS has been named and granted a settlement agent licensee by the PBoC to act as the first bank to offer Chinese interbank bond services.
Singapore-China Market Connectivity
The new initiative aimed to strengthen market connectivity between the two countries was addressed during the 15th Joint Council for Bilateral Cooperation and co-chaired by Singapore deputy prime minister and finance minister Heng Swee Keat; and Chinese vice premier Han Zheng.
In addition, the MAS also said it was in discussions with the China Securities Regulatory Commission (CSRC) to further enhance capital market connectivity and agreed to «strengthen cross-border supervisory cooperation to promote the healthy and stable development of the securities and futures markets», according to a release.
