What’s new: China’s top securities regulator and Singapore’s central bank said they’ll support the two countries’ exchanges in launching exchange-traded fund (ETF) products that can be traded on each other’s markets, according to a Monday statement from the Chinese side.
Fang Xinghai, a vice chairman of the China Securities Regulatory Commission (CSRC), and Ho Hern Shin, a deputy managing director of the Monetary Authority of Singapore (MAS), also discussed strengthening cooperation in securities and futures markets, regulatory approaches, and green finance at a bilateral supervisory roundtable on Jan. 26, the statement said.
The background: An ETF connect mechanism between the Singapore Exchange and the Shenzhen Stock Exchange was one of the new initiatives to expand financial cooperation between the two countries announced by the MAS in December. The two exchanges have signed a memorandum of understanding to establish the link, which would allow eligible fund managers to offer ETF products to investors in each other’s markets. Other initiatives included setting up a bond trading linkage and commodity derivatives collaboration.
The establishment of the regulatory roundtable between the CSRC and the MAS was a result of Chinese President Xi Jinping’s visit to Singapore in 2015.
Contact reporter Zhang Yukun (yukunzhang@caixin.com) and editor Heather Mowbray (heathermowbray@caixin.com)
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