SINGAPORE – The Singapore Exchange (SGX) and the Chongqing Municipal Financial Regulatory Bureau (Chongqing Bureau) will be strengthening their joint efforts to encourage capital flows and enterprise fundraising.
Under a memorandum of deepening cooperation inked on Wednesday, the parties will work together to promote capital flows from Chongqing’s qualified domestic investors into Singapore’s capital markets, as well as explore fundraising opportunities in Singapore for enterprises from central and western China, including those from Chongqing.
Greater China companies account for some 20 per cent of the market capitalisation of Singapore-listed companies and that about 15 per cent of bond issuers on the bourse are from Greater China, said SGX.
The Chongqing Bureau, formerly known as the Chongqing Financial Affairs Office, had signed a memorandum of understanding with SGX in May 2010.
The latest memorandum follows a strategic cooperation agreement SGX and the China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity (CCI) Administrative Bureau entered into in January. The memorandum had set out to facilitate access to cross-border financial services and create business opportunities for enterprises from western China.
Chew Sutat, SGX’s senior managing director and head of global sales and origination, said the new memorandum aligns with the goals of CCI, the China-Singapore government-to-government project that endeavours to spur the economic growth of Western China.
“In addition to offering Chongqing enterprises access to international capital, SGX is also an ideal springboard into Asean as these companies continue to tap growth opportunities beyond China,” Mr Chew added.