The Singapore Exchange (SGX) announced this Monday that it has signed a Memorandum of Understanding (MoU) with a large securities brokerage in China, GF Securities Corporation, to encourage stronger connectivity between the capital markets of the two respective countries.
The signing of the MoU will see GF Securities expand its reach and services not only in Singapore but the general region. The brokerage’s subsidiary, GF Futures (Hong Kong) Co., Ltd., has been a derivatives trading member of SGX since 2011.
In particular, the Chinese brokerage will enact plans to enhance its existing distribution of SGX’s derivatives products. This will include Chinese Renminbi futures. The move will enable access to SGX’s securities market, the statement from SGX said today.
Commenting on the MoU, Loh Boon Chye, CEO of SGX, said in the statement: “We look forward to deepening our cooperation and relationship with GF Securities, whom we have worked closely with in the past decade.
“As investors increasingly adopt multi-asset strategies to achieve their investment objectives in the current low interest rate environment, this collaboration with GF Securities paves the way for its clients to access the wide range of investment products and opportunities offered by SGX, thereby enhancing capital flows between China and Singapore.”
GF Securities to increase FX and commodity derivatives trading on SGX
As part of the agreement, GF Securities will further increase its foreign exchange (forex) futures and commodity derivatives trading on the Singaporean exchange. Currently, the company participates in SGX’s over the counter (OTC) bond trading platform.
“Financial cooperation has been one of the brightest spots since China and Singapore established bilateral relations thirty years ago. This agreement underlines our commitment to actively participate in the Belt and Road Initiative and marks a new step in our internationalisation efforts,” Sun Shuming, Chairman and General Manager of GF Securities added in the statement.
“Stronger financial connectivity between China and Singapore not only enables Chinese enterprises and investors branching out overseas, but also introduces RMB assets to global investors.”
The signing of the MoU was announced at the 11th Singapore-Guangdong Collaboration Council meeting. This was co-chaired by Singapore’s Minister for Transport Ong Ye Kung and Guangdong Governor Ma Xingrui.