Fintech News | Fintech Zoom

Singapore, China to collaborate on fintech, supervision of futures exchanges

Two agreements inked between financial agencies will pave the way for China and Singapore to collaborate on fintech innovations and cross-border supervision of futures exchanges and intermediaries.

The Monetary Authority of Singapore (MAS) concluded and exchanged the cooperation agreements with the People’s Bank of China (PBOC) and the China Securities Regulatory Commission (CSRC) this week during Chinese Premier Li Keqiang’s visit to Singapore.

The first agreement signed with PBOC calls for fintech cooperation between the two countries. It aims to pave the way for joint research and innovation projects in the application of key technologies including digital and mobile payments. It also provides for regulatory coordination with respect to cross-border expansion of fintech companies.

MAS has signed a second memorandum of understanding with CSRC. The two agencies look to exchange information and enhance supervision of futures exchanges and intermediaries that offer cross-border services. They will also collaborate on the listing and trading of exchange-traded derivative products that have connections between both capital markets.

The exchange of these regulatory agreements was witnessed by Mr Li and Singapore Prime Minister Lee Hsien Loong. Mr Li is in Singapore to attend the 33rd Asean Summit and related events this week.

Additionally, two private-sector tie-ups were concluded during Mr Li’s visit.

Nets signed a memorandum of understanding with UnionPay International to support cross-border connection of their mobile wallets. This tie-up allows users of NetsPay to scan and pay for purchases at around 10 million UnionPay QR code merchants globally; conversely, UnionPay customers can spend at Nets merchants island-wide.

On Wednesday (Nov 14), the Singapore Exchange (SGX) signed a strategic cooperation agreement with Bank of China (BOC) and China Foreign Exchange Trade System and National Interbank Funding Center (CFETS) to jointly promote the CFETS-BOC Traded Bond Index and its sub-indices outside China to international investors.

The bond indices, designed by CFETS and BOC, track the movements of the Chinese bond market and can be used by investors to benchmark their Chinese bond portfolio performance. The SGX will be the first exchange to distribute the CFETS-BOC traded bond indices outside China. The launch of the indices is intended to catalyse the development of tradable China bond products and facilitate greater investments in China’s bond market by international investors.

MAS managing director Ravi Menon said: “This week’s signing of agreements between the financial regulators of China and Singapore bears testimony yet again to the growing strength of financial cooperation between our two countries.”

He noted that the private-sector agreements represent firsts in their respective areas. “The launch of the CFETS-BOC Traded Bond Indices on SGX will help enhance bond connectivity between China and Singapore. The Nets-UPI tie-up will allow a larger number of travellers between the two countries to make payments in each other’s markets.

“These four agreements will help to further deepen the growing connectivity between the financial sectors of China and Singapore,” he said.

Oliver Smith

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