Singapore and China Enhance Financial Cooperation with New Green Finance and Capital Markets Initiatives

On 11 November 2024, the Monetary Authority of Singapore (“MAS“) announced new green finance and capital markets initiatives to enhance financial cooperation with China. These initiatives were announced at the 20th Joint Council for Bilateral Cooperation (“JCBC“) meeting in Singapore and include:

  • Catalysing Green Financing Flows: The China-Singapore Green Finance Taskforce (“GFTF“), established by MAS and the People’s Bank of China (“PBoC“) in 2023, has been working to expand the Common Ground Taxonomy (“CGT“) under the International Platform on Sustainable Finance’s (“IPSF“) to include the Singapore-Asia Taxonomy (“SAT“). On 14 November 2024, the IPSF presented the Multi-Jurisdiction Common Ground Taxonomy (“M-CGT“). The M-CGT highlights the commonalities and differences across the three taxonomies (M-CGT, bilateral EU-China CGT and SAT) focusing on activities contributing to climate change mitigation. For more information on M-CGT, please click here.

  • Piloting the “Over-the-Counter” Bond Market Framework: MAS and PBoC are exploring a pilot with Singapore and Chinese banks to enhance international investors’ access to China’s bond market. The pilot will leverage the existing “over-the-counter” bond market framework in China, enabling participating banks in Singapore to provide trading and custody services for selected fixed income products for the China Interbank Bond Market.

  • Strengthening Collaboration in Indices and Exchange Traded Funds (“ETF”) Product Links: MAS and the China Securities Regulatory Commission (“CSRC“) are in discussions to expand the suite of products on the ETF Product Links. Singapore Exchange (“SGX“) and China Securities Index are also in discussions to develop a second index after the successful launch of their Emerging Asia Technology Index in January 2024.

  • Facilitating Financial Institutions’ Access to Chinese Markets:

    • First Listing of Panda Bond in Singapore. MAS and PBoC welcomed the first Panda Bond listing on SGX in October 2024. The listing of Panda Bonds in Singapore will foster greater interest and participation by international investors and issuers in the Panda Bond market.

    • Memorandum of Understanding (“MoU”) between UOB and the Shanghai Gold Exchange (“SGE”). UOB and SGE have concluded an MoU to cooperate in proprietary trading and physical delivery of gold products and provide innovative services to ASEAN gold suppliers and investors.

With CSRC’s support for eligible onshore companies to access international capital markets for growth, MAS welcomes the listing of eligible Chinese companies on SGX.

Click on the following link for more information:


Disclaimer

Rajah & Tann Asia is a network of member firms with local legal practices in Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Our Asian network also includes our regional office in China as well as regional desks focused on Brunei, Japan and South Asia. Member firms are independently constituted and regulated in accordance with relevant local requirements.

The contents of this publication are owned by Rajah & Tann Asia together with each of its member firms and are subject to all relevant protection (including but not limited to copyright protection) under the laws of each of the countries where the member firm operates and, through international treaties, other countries. No part of this publication may be reproduced, licensed, sold, published, transmitted, modified, adapted, publicly displayed, broadcast (including storage in any medium by electronic means whether or not transiently for any purpose save as permitted herein) without the prior written permission of Rajah & Tann Asia or its respective member firms.

Please note also that whilst the information in this publication is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as legal advice or a substitute for specific professional advice for any particular course of action as such information may not suit your specific business and operational requirements. You should seek legal advice for your specific situation. In addition, the information in this publication does not create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on the information in this publication.

CONTACTS

Head, Sustainability
+65 6232 0707
Brunei, Singapore,
Partner
+65 6232 0775
Singapore,

Country

EXPERTISE

Share

Rajah & Tann Asia is a network of legal practices based in Asia.

Member firms are independently constituted and regulated in accordance with relevant local legal requirements. Services provided by a member firm are governed by the terms of engagement between the member firm and the client.

This website is solely intended to provide general information and does not provide any advice or create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on this website.

© 2024 Rajah & Tann Singapore LLP. All rights reserved. Rajah & Tann Singapore LLP (UEN T08LL0005E) is registered in Singapore under the Limited Liability Partnerships Act (Chapter 163A) with limited liability.