Singapore Exchange said on Tuesday that it signed a strategic cooperation deal with a Singapore-China inter-government project to support cross-border financial services.
The deal with China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity (CCI) Administrative Bureau is the third inter-government project between the two countries, it said in a filing to SGX after the market close Tuesday.
The tie-up is aimed at facilitating Western China enterprises’ access to “innovative” financial services and at supporting Chongqing in a central role under the CCI, it said.
Chew Sutat, head of equities and fixed income at SGX, said that the deal was an extension of its existing partnership aimed at helping Chinese companies seek out cross-border funding.
“As both China and Singapore governments work towards greater connectivity between Western China and Southeast Asia, the need for more international capital will grow. SGX is well-placed to support this trend,” Chew said in the statement.
SGX has previously developed partnerships with the State-Owned Assets Supervision and Administration Commission (SASAC) and the Financial Affairs Office (FAO) of the Chongqing Municipal Government as part of efforts to help Chongqing companies access international capital funding for business expansion, the statement said.
It noted that more than 100 of the around 740 companies listed on SGX are based in Greater China and make up around 20 percent of the exchange’s market capitalization and around 15 percent of the bond issuers.