The Monetary Authority of Singapore (MAS) has introduced new green finance and capital market initiatives aimed at enhancing financial collaboration with China. Unveiled during the 20th Joint Council for Bilateral Cooperation (JCBC) meeting in Singapore, co-chaired by Singapore’s Deputy Prime Minister Gan Kim Yong and China’s Vice Premier of the State Council Ding Xuexiang, the initiatives seek to boost cross-border green financing, improve bond market accessibility, and deepen ties in indices and Exchange Traded Funds (ETFs) between the two countries.
One of the core initiatives involves the China-Singapore Green Finance Taskforce (GFTF), established by MAS and the People’s Bank of China (PBC), which will expand the Common Ground Taxonomy (CGT) to include the Singapore-Asia Taxonomy. This alignment with the EU, China, and Singapore taxonomies will streamline cross-border green financing, such as green loans, bonds, and investments. The GFTF has also launched a “Green Corridor” to support Panda Bond issuances, aimed at facilitating green capital flows between Singapore and China.
Additionally, MAS and PBC are piloting an “over-the-counter” bond market framework. Under this initiative, selected banks in Singapore will be able to trade and provide custody for fixed-income products from the China Interbank Bond Market, enhancing access for international investors to China’s bond market.
MAS is also collaborating with the China Securities Regulatory Commission (CSRC) to enhance ETF offerings through existing links between the Singapore Exchange (SGX) and the Shenzhen and Shanghai Stock Exchanges. Building on the Emerging Asia Technology Index launched in early 2024, the two parties plan to introduce additional indices, meeting the growing demand for regional capital market products.
To further facilitate market access, MAS and PBC celebrated the listing of the first Panda Bond on SGX, a three-year, RMB 5 billion issuance by UOB. This listing is expected to attract more international investors to China’s Panda Bond market. Additionally, UOB and the Shanghai Gold Exchange signed a Memorandum of Understanding (MoU) to advance ASEAN gold trading and physical delivery, providing innovative solutions for regional investors.
MAS has also invited Chinese companies aiming to expand in Southeast Asia to consider listings on SGX, in line with CSRC’s policy of supporting Chinese companies in accessing global capital markets.
Chee Hong Tat, Minister for Transport and Second Minister for Finance, and Deputy Chairman of MAS, commented, “Financial cooperation has been a key pillar underpinning the strong bilateral relations between China and Singapore. The initiatives announced today at the 20th anniversary of JCBC reflect our commitment to deepen financial connectivity between our markets.”
