People stroll through the Singapore ExchangeLtd (SGX) head office in Singapore, on Wednesday,Feb 17, 2021.
Lauryn Ishak|Bloomberg|Getty Images
China’s Shenzhen Stock Exchange and the Singapore Exchange (SGX) have actually dedicated to establishing a cross-border link for exchange-traded funds (ETFs), the bourses stated, a relocation developed to open a larger series of financial investment choices on both sides.
Under a Memorandum of Understanding (MoU) for the link, the 2 exchanges will collectively establish and promote ETF markets in Singapore and China through cross-border financial investments, the bourses stated in different declarations late on Tuesday.
The MoU represents the most recent action by China to open its capital markets. Earlier this month, China and Hong Kong bourses accepted include ETFs to their stock link plans, and China’s securities regulator revealed strategies to expand the Shanghai-London Stock Connect to consist of capital markets in Germany and Switzerland.
“The strong demand for ETFs in Asia underscores the region’s growing role as a global ETF hub and we are excited about the manifold opportunities that this partnership could bring,” Loh Boon Chye, Chief Executive Officer of SGX, stated in the declaration.
Sha Yan, President & & CEO of the Shenzhen exchange, stated the arrangement will offer financiers in China and Singapore with varied, cross-border chances.
As at end November, Singapore- noted ETFs went beyond 12 billion Singapore dollars ($ 8.86 billion) in properties, up almost 50% from a year previously, SGX stated. The Shenzhen Stock Exchange presently lists 212 ETFs with a combined market capitalization of $39 billion.
