New initiatives to expand cooperation in green finance and deepen capital market linkages with China were recently announced by the Monetary Authority of Singapore (MAS) at Singapore’s 18th Joint Council for Bilateral Cooperation (JCBC).
Among the initiatives is the establishment of the China and Singapore Green Finance Taskforce to deepen bilateral cooperation in green finance and facilitate greater public-private sector exchanges to mobilise better private capital for the region’s sustainable development needs.
The taskforce will explore collaboration in standards and definitions, green and transition financing solutions, and data and technology enablers to catalyse green financing flows and enhance green investment opportunities in China and the region.
Additionally, Singapore Exchange (SGX) and Shenzhen Stock Exchange (SZSE) will welcome the first three participating ETFs under the ETF Product Link by year-end.
These participating ETFs are launched under collaborations between China Southern Asset Management and CSOP Asset Management Singapore, as well as between Ping An Fund Management Company and United Overseas Bank Asset Management.
This ETF Product Link will allow investors in China and Singapore to access ETF investment opportunities in each other’s markets.
The third initiative is that the SGX, Shanghai Stock Exchange, and SZSE will jointly launch a Low Carbon Index Family by year-end. This will serve as a benchmark for fund managers to establish new green funds focused on China, ASEAN, and other countries in Asia.
“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. 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,”
said Leong Sing Chiong, Deputy Managing Director (Markets and Development) of MAS.
The event was co-chaired by Singapore Deputy Prime Minister and Coordinating Minister for Economic Policies, Heng Swee Keat, and People’s Republic of China Executive Vice Premier of the State Council, Han Zheng.
Featured image credit: Edited from Freepik
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