SGX, CFETS, Bank of China sign bond indices agreement
The Singapore Exchange (SGX), Bank of China Ltd (BOC) and China Foreign Exchange Trade System & National Interbank Funding Centre (CFETS) have signed an agreement to promote the CFETS-BOC Traded bond index and its sub-indices outside of China to international investors.
SGX will be the first exchange to distribute the bond indices outside of China, by publishing the indices on its website, according to an SGX statement on Wednesday (14 November).
The three parties will also explore the feasibility of developing financial products to be listed on SGX, using the bond indices as the underlying component.
CFETS and BOC jointly developed and launched the bond indices, which are based on the transaction characteristics of various types of bonds and represent top liquidity in the current China Interbank Bond Market (CIBM).
4 Singapore-China agreements signed
The agreement is part of the four signed this week between Singapore and China and witnessed by Chinese Premier Li Keqiang and Singapore Prime Minister Lee Hsien Loong, said the Monetary Authority of Singapore (MAS) in a statement.
Li is in Singapore to attend the 33rd Asean Summit and its related meetings.
The other agreements include a memorandum of understanding (MOU) between NETS and China Union Pay International to support cross-border connection of their mobile wallets.
Regulatory developments
On the regulatory front, the MAS concluded and exchanged two cooperation agreements with the People’s Bank of China (PBOC) and the China Securities Regulatory Commission (CSRC).
MAS AND PBOC signed a financial technology (fintech) agreement for regulatory coordination related to the expansion of fintech companies into each other’s markets. The agreement will also pave the way for joint innovation projects in the application of key technologies including blockchain, digital and mobile payments, and research.
The CSRC and MAS also signed an MOU for the cooperation and exchange of information on the regulation of cross-border derivatives activities.
Related stories:
MAS, SGX leverage blockchain tech for tokenised assets settlement
