Singapore boosts financial connectivity with China

The Monetary Authority of Singapore (MAS) and Singaporean Government have signalled the success of the China-Singapore (Chongqing) Connectivity Initiative (CCI) in enhancing financial connectivity across the region.

Speaking at the 5th China-Singapore (Chongqing) Connectivity Financial Summit last week, Minister for Communications and Information and Second Minister for Home Affairs, Josephine Teo, said the rise in Singapore financial institutions establishing themselves in Chongqing has only boosted its financial landscape.

“Singapore-Chongqing collaboration in financial services has evolved in tandem with the broadening of our cooperation under the CCI, from providing traditional cross-border financing to companies in Chongqing and China,” she said.

“Our collaboration has expanded to include green and sustainable finance areas.”

In 2022, the initiative facilitated approximately US$6 billion in cross-border financing deals from the Western Region, bringing the total value of deals since its inception in 2015 to over US$29 billion.

The Summit also saw 17 Memoranda of Understanding (MOUs) penned between Singapore and Chongqing to enable cooperation in cross-border financing, fintech and talent development.

Ravi Menon, Managing Director of the MAS, told attendees at the Summit the CCI is the first step in establishing long-term and broader connectivity between Singapore and China.

“Chongqing has a green financial reform and innovation pilot zone. This could serve as a safe space for green finance initiatives to be piloted. As Taskforce discussions progress, we can work closely with Chongqing to assess suitable green projects for incubation,” he said.

“Chongqing and Singapore have been working with our financial institutions to raise awareness of green financing amongst Chinese corporates.

“Chinese corporates which want to issue green bonds can avail themselves of MAS’ grant schemes to help defray the additional costs of third-party verification when issuing green bonds in Singapore.

“Chongqing and Singapore can do more to simplify the application process for qualified companies in the Western Region to raise sustainable finance overseas. This can leverage on the trials that Chongqing and Chengdu have done earlier this year to facilitate such issuance.”