Strategy
Singapore, Hong Kong Exchanges Sign MoU To Promote RMB Internationalisation
The Singapore Exchange has partnered with the Hong Kong Exchanges and Clearing with the goal to promote the internationalisation of the Renminbi.
The Singapore Exchange has partnered with the Hong Kong Exchanges and Clearing with the goal to promote the internationalisation of the Renminbi.
The two entities signed a memorandum of understanding to collaborate in the development of RMB investment products to further the growth of the RMB as a global currency, covering new technology, regulation and joint product creation. The rollout will include bonds, commodity, equity or currency-based products. They will remain competitors in other areas.
"[The deal] allows us to build on Hong Kong's position as a premiere offshore RMB centre by developing closer links with Singapore and helping regional investors deploy a growing pool of investable offshore RMB," said Charles Li Xiaojia, chief executive of HKEx.
According to the Financial Services Development Council, the 22-member body created in January 2013 to promote financial services in Hong Kong, the territory accounts for around 80 per cent of all offshore RMB trading.
