Singapore, China cooperate on green finance initiative

Singapore and China have signalled the development of several new initiatives across the financial services industry to deepen cooperation on green finance and connect native capital markets.

Three initiatives were announced at the 18th Joint Council for Bilateral Cooperation (JCBC) held in Singapore earlier this month by co-chairs Singapore Deputy Prime Minister and Coordinating Minister for Economic Policies, Mr Heng Swee Keat, and People’s Republic of China Executive Vice Premier of the State Council, Mr Han Zheng.

The Monetary Authority of Singapore (MAS) and the People’s Bank of China will establish the China – Singapore Green Finance Taskforce to encourage better cooperation on green finance and promote more public-private sector exchange to raise private capital to sustain the region’s green development goals.

The taskforce will “explore collaboration in areas such as standards and definitions, green and transition financing solutions, data and technology enablers to catalyse green financing flows, and enhance green investment opportunities in China and the region” MAS said in a statement.

“The launch of the Green Finance Taskforce is very timely, as finance plays a key role in catalysing our transition to a more sustainable future,” Leong Sing Chiong, Deputy Managing Director (Markets and Development) at MAS, said.

“This collaboration in green finance builds on earlier initiatives to strengthen RMB and capital market connectivity. MAS will continue to work closely with our central bank and regulatory counterparts in China to deepen our financial cooperation and unlock new growth drivers for our economies.”

The Singapore Exchange (SGX) and Shenzhen Stock Exchange (SZSE) will also launch the first three exchange traded funds under the new ETF Product Link through collaborations with China Southern Asset Management, CSOP Asset Management Singapore, Ping An Fund Management Company and United Overseas Bank Asset Management. Investors will be able to access these funds from each market.

The SGX, Shanghai Stock Exchange and SZSE will also bring to market a Low Carbon Index Family to provide a benchmark for investment managers to launch new sustainable funds focused on Asian nations in an effort to drive interest towards the region’s green fund managers.