SGX, ICBC and CCDC tie up to promote bond indexes

ICBC branch in SingaporeICBC branch in Singapore

Industrial and Commercial Bank of China (ICBC), China Central Depository & Clearing (CCDC) and Singapore Exchange (SGX) have signed a memorandum of understanding (MOU) to jointly promote the newly launched ChinaBond-ICBC RMB Bond indexes, the companies said in a statement Monday.

The indexes “will provide another avenue for international investors to tap on investment opportunities in China, while giving impetus to China’s efforts to internationalise the renminbi,” the statement said.

ChinaBond Pricing Center (CBPC), a subsidiary of CCDC, together with ICBC, developed the indexes to cover large, highly liquid treasury bonds, policy bank bonds and mainstream securities, such as credit bonds, the statement said.

The indexes include the ChinaBond ICBC Key Terms Treasury Bond Index, ChinaBond ICBC 1-5 year Key Terms Policy Bank Bond Index and ChinaBond ICBC 3-5 year Credit Bond Index, the statement said.

Under the MOU, ICBC, CCDC and SGX will increase investor awareness of the indexes via educational sessions and publicity activities, with SGX the first exchange to display the indexes outside of China, the statement said.

The three parties will also explore developing financial products based on the indexes, which can be listed on SGX, the statement said.

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