In response to increasing global demand for RMB products, the Singapore Exchange (SGX) has increased its ability to offer instruments denominated in the Chinese currency.
The exchange said it was now ready to list, quote, trade, clear and settle RMB-denominated securities.
Singapore’s initiative will stimulate issuer and investor opportunities who want to participate in the internationalisation of the RMB. SGX’s addition of RMB securities trading adds to its existing offshore RMB listed bonds.
Issuers listing RMB securities on SGX can choose to offer dual-currency trading, providing investors with the ability to trade the security either in RMB or Singapore dollars.
“SGX, as the Asian Gateway, is committed to being the exchange of choice for issuers with RMB fund-raising needs and for investors who are keen to participate in the China growth story. The listing and trading of RMB securities on SGX will also extend Singapore’s position as an offshore RMB centre,” said Magnus Bocker, CEO of SGX.
Singapore’s move comes as competition in RMB product offerings heat up in Asia. Earlier this week, Hong Kong’s Securities and Futures Commission (SFC) approved the first renminbi qualified foreign institutional investor A-share ETF for listing on the Hong Kong Exchange (HKEx).
HKEx is currently preparing to list the first exchange-traded RMB-denominated sovereign bonds on its market and will being trading RMB currency futures in Q3.
The SFC also this week welcomed the move by the China Securities Regulatory Commission to allow ETFs that track a Hong Kong stock index to be listed on the Shanghai and Shenzhen stock exchanges.