Finance regulators in China and Singapore have sealed a strategic partnership, under which they will develop each other’s capital markets systems.
As announced on 3 November, the China Securities Regulatory Commission (CSRC) and Monetary Authority of Singapore (MAS) have agreed to pursue a range of initiatives.
Representatives from finance firms in both Singapore and China were invited to the roundtable meeting, where they were asked to share their experiences and insights of the industry as it currently stands.
They also provided expert input on a number of proposed, collaborative projects between the two agencies.
Among those ventures are:
For knowledge-sharing purposes, the regulators have also agreed to develop a staff-exchange programme.
The bilateral talks marked a key outcome of Chinese President Xi Jinping’s state visit to Singapore in 2015. During that trip, he called for securities regulators from both sides to engage in regular, high-level dialogues.
MAS deputy managing director Ong Chong Tee said: “As global capital markets become more interlinked, it is important for supervisory authorities to promote greater understanding of their respective regulatory frameworks.”
He added: “With growing cross-border capital market activities taking place between China and Singapore, the MAS-CSRC roundtable provides a good platform for both agencies to exchange views on potential areas for supervisory cooperation on a regular and timely basis.”
The announcement came a week after MAS struck up a similar collaborative arrangement with the Hong Kong Monetary Authority (HKMA).
Under that alliance, the partners will jointly develop a cross-border, trade finance infrastructure based upon blockchain technology.
MAS managing director Ravi Menon said: “MAS is delighted to embark on this fintech partnership with Hong Kong. This is one of our more significant fintech cooperation agreements – given the extensive financial and trade linkages between Singapore and Hong Kong.
“We are especially pleased that we have a live project to enhance the trade finance corridor between the two financial centres.”
HKMA chief executive Norman Chan added: “Hong Kong and Singapore are the two leading international financial centres in the region and are actively deploying fintech.
“Collaboration between the HKMA and MAS will create significant synergy for the development of fintech and more efficient fund flows between the two markets.”
Full details of their trade finance project will be unveiled in due course.