UOB, Singapore Exchange and the China Chamber of International Commerce (CCOIC) signed a memorandum of understanding to help Chinese companies use Singapore as a base for expanding into Southeast Asia, the three said in a statement on Sunday.
“Under the new MOU, more than 180,000 Chinese enterprises under CCOIC can benefit from UOB’s banking expertise and integrated ASEAN network, as well as from SGX’s trusted capital market infrastructure and deep liquidity to venture into Singapore and Southeast Asia,” the statement said.
ASEAN stands for the 10-member Association of Southeast Asian Nations.
The three parties said they will assist Chinese enterprises in efforts to use Singapore’s debt and equity markets, and the city-state’s role as a regional treasury hub and global financing center.
This will include support in trade settlement, project financing, liquidity management, foreign exchange and derivatives transactions, as well as connecting Chinese businesses with potential partners in Southeast Asia, the statement said.
The deal builds on UOB’s existing tie-ups with CCOIC to assist Chinese enterprises’ efforts to internationalize their businesses, the statement said, pointing to deals from 2012 and 2014.
Loh Boon Chye, CEO of SGX, said the exchange’s fundraising and risk-management platforms, combined with UOB’s financial expertise and CCOIC’s network in the Chinese business community will assist enterprises looking to capitalize on China’s Belt and Road Initiative and on environmental efforts.
“Chinese enterprises can also benefit from Singapore’s position as a global wealth management hub and overseas renminbi center, while leveraging our strategic location in ASEAN as a springboard into the one of the world’s fastest growing regions,” Loh said in the statement.
The MOU was signed at the second Belt and Road Forum in Beijing, the statement said.
CCOIC is a national business association in China; it works to promote trade and collaboration between member companies and global organizations, the statement said.