BEIJING: A new pact has been signed to help Chinese companies tap on Singapore’s capital markets and expertise as a regional treasury hub and global financing centre, when they venture into Southeast Asia.
The memorandum of understanding (MOU) was signed by United Overseas Bank (UOB), Singapore Exchange (SGX) and the China Chamber of International Commerce (CCOIC) on Saturday (Apr 27) in conjunction with the second Belt and Road Forum in Beijing.
AdvertisementUnder the new pact, UOB, SGX and CCOIC will provide assistance and advisory services on market entry and corporate actions, such as debt and equity listing and asset securitisation, said a press release on Sunday.
They will also offer support like trade settlement, project financing, liquidity management, foreign exchange and derivatives transactions, as well as connect Chinese enterprises to potential business partners across ASEAN.
UOB and SGX, together with the Chinese national business association, will hold industry events and seminars to promote trade and investment between China and Singapore.
More than 180,000 Chinese enterprises under the CCOIC are expected to benefit from this partnership with UOB and SGX, according to the press release.
AdvertisementAdvertisementThe new pact builds on UOB’s existing collaboration with CCOIC, it added. Last year, UOB helped 50 per cent more Chinese companies expand into ASEAN compared to 2017, resulting in a 31 per cent increase in cross-border business flows over the same period.
UOB’s chief executive and deputy chairman Wee Ee Cheong said: “For enterprises seeking opportunities in ASEAN, we have been helping them navigate market complexities and offering financial and business support through our integrated network, strong knowledge of and experience in the local markets and our ecosystem of strategic partners.”
“Chinese enterprises can also benefit from Singapore’s position as a global wealth management hub and overseas RMB centre, while leveraging our strategic location in ASEAN as a springboard into the one of the world’s fastest growing regions,” said SGX’s chief executive Loh Boon Chye.
The newly signed pact will add value to enterprises tapping on the growth opportunities led by China’s Belt and Road and other environmental initiatives, he added.
Mr Wee and Mr Loh were part of the 8-member business delegation, led by the Singapore Business Federation, that attended the Belt and Road summit in Beijing this week. Both were present at Saturday’s signing, which was also witnessed by Singapore’s Trade and Industry Minister Chan Chun Sing and Senior Minister of State Koh Poh Koon.
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