Singapore and China have unveiled
a new package of financial cooperation measures, including the
appointment of DBS Bank as Singapore’s second renminbi (RMB)
clearing bank and the introduction of a digital yuan (e-CNY) pilot
programme for Singapore-based travellers, Fintech News SG
reports.
The Monetary Authority of
Singapore (MAS) said DBS’s designation will help drive further
expansion of Singapore’s offshore renminbi ecosystem. Until now,
the Industrial and Commercial Bank of China (ICBC) Singapore branch
has served as the city-state’s sole RMB clearing bank, a role it
has held since 2013.
The addition of DBS is expected
to make it easier to use the Chinese currency for trade, investment
and other economic activities, in line with evolving regional and
cross-border demand.
Under the e-CNY pilot, Singapore
travellers will be able to open and top up digital yuan wallets
domestically for use at participating merchants in China. The
service will be introduced in stages from the end of 2025, through
the Singapore branches of ICBC and Bank of China. MAS said the
initiative will complement existing payment linkages and improve
convenience for travellers.
Beyond payments, both sides also
voiced support for A-share companies listed in Shanghai and
Shenzhen to seek secondary listings on the Singapore Exchange. MAS
and the China Securities Regulatory Commission said the framework
for secondary listings will be expanded to help firms access
international capital markets and diversify funding sources to
support regional growth.
In addition, Bank of China and
DBS will introduce an over-the-counter bond market arrangement.
This will allow designated banks in Singapore to offer
institutional investors access to selected products from the China
Interbank Bond Market. MAS noted that the move strengthens
Singapore’s position as a key gateway for Asian investment
flows.
Singapore’s financial regulator
also signed an updated memorandum of understanding with the
Chongqing Municipal People’s Government under the China–Singapore
Chongqing Connectivity Initiative, marking the programme’s 10th
anniversary. The agreement covers collaboration in cross-border
financing and investment, fintech development and green finance,
aimed at facilitating financial services links between western
China, Singapore and the wider ASEAN region.
MAS Managing Director Chia Der
Jiun said the deepening financial connectivity between the two
countries has played an important role in supporting cross-border
trade and investment. He added that Singapore looks forward to
building on this momentum through the newly announced initiatives
and continued cooperation between financial institutions in banking
and capital markets.
The measures were announced by
MAS at the 21st Joint Council for Bilateral Cooperation meeting in
Chongqing, co-chaired by Singapore’s Deputy Prime Minister and
Minister for Trade and Industry Gan Kim Yong, and China’s Vice
Premier Ding Xuexiang.
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