Singapore Exchange (SGX) has joined forces with China’s securities brokerage GF Securities to foster more connectivity between the capital markets of the two jurisdictions.
The two parties have inked a memorandum of understanding (MoU) for the purpose.
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Details of the MoU
The bourse will now work with GF Futures (Hong Kong), a unit of GF Securities.
The aim is to strengthen its reach and offering in Singapore and the region.
Through the agreement, GF Securities aims to deepen its distribution of SGX’s derivatives products including Chinese Renminbi futures.
The agreement will also support access to SGX’s securities market.
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By GlobalDataGF Securities aims to increase awareness of multi-asset investment opportunities in the two markets.
The focus will be on SGX-listed real estate investment trusts (REITs) and fixed income products.
GF Futures has been the bourse’s derivatives trading member since 2011.
GF Securities chairman and general manager Sun Shuming said: “This agreement underlines our commitment to actively participate in the Belt and Road Initiative and marks a new step in our internationalisation efforts.
“Stronger financial connectivity between China and Singapore not only enables Chinese enterprises and investors branching out overseas, but also introduces RMB assets to global investors.”
GF Securities also intends to boost FX futures and commodity derivatives trading on SGX.
Moreover, it plans to promote the listing of fixed income products on SGX.
GF Securities (Hong Kong) Brokerage, another unit of GF Securities, will apply for SGX’s securities trading membership.
This will enable its customers to gain access to online brokerage services for Singapore-listed securities products.
GF Securities, through its wealth management and asset management operations, will also collaborate with SGX to engage institutional investors in China and Singapore.
SGX CEO Loh Boon Chye has welcomed the alliance.
Che said that the agreement allows its clients “to access the wide range of investment products and opportunities offered by SGX, thereby enhancing capital flows between China and Singapore”.
Last month, SGX and global index provider FTSE Russell expanded their alliance to create new Asian multi-asset solutions.
