SGX and Nanhua Futures in tie-up to develop China Belt and Road indexes

Signage at the SGX building on Shenton Way in Singapore; taken October 2018.Signage at the SGX building on Shenton Way in Singapore; taken October 2018.

Singapore Exchange said on Monday that it was partnering with Nanhua Futures to develop ways for investors to access opportunities related to China’s Belt and Road Initiative (BRI).

As part of the partnership, SGX Index Edge will work with Nanhua Futures’ wholly owned subsidiary, Nanhua Fund, to develop indexes that are representative of China’s BRI and would be in demand by investors both in China and overseas, it said in a filing to SGX on Monday.

SGX and Nanhua Futures also plan to jointly conduct and promote equity research on Singapore stocks that would be of interest to Chinese and other international investors, it said.

Ng Kin Yee, head of market data and connectivity at SGX, pointed to Southeast Asian and China companies, across a variety of sectors, which are listed on SGX and are poised to benefit from the BRI.

“Utilising SGX Index Edge’s index-calculation expertise, coupled with Nanhua’s research capabilities in China, we are looking to compile an index for investors to track and capture investment opportunities arising from the BRI,” Ng said in the statement.

Luo Xufeng, general manager of Nanhua Futures, said the aim was to develop an index that would not only offer a BRI reference for global investors, but would also enable participation in the internationalization of China.

BRI is China’s long-term development plan for infrastructure, trade and investment across 65 countries in Asia, Africa and Europe, it said.

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