Singapore and China have embarked on a transformative financial partnership, implementing a series of groundbreaking capital market initiatives designed to strengthen bilateral economic ties. The collaboration, featuring over two dozen agreements signed during December’s 21st Joint Council for Bilateral Cooperation in Chongqing, establishes new pathways for Chinese companies to access international capital through Singapore’s dynamic financial ecosystem.
Central to this enhanced cooperation is a newly established secondary listing framework that dramatically streamlines bond issuance processes for Shanghai and Shenzhen-listed companies seeking to raise funds in Singapore. This innovative system reduces administrative procedures and documentation requirements, compressing the typical timeline for bond issuance to approximately six to eight weeks—a significant improvement over conventional processes.
Chia Caihan, Head of Capital Markets for Greater China at Singapore Exchange (SGX), emphasized the strategic importance of these developments: “Streamlining listing processes while maintaining full compliance with Chinese corporate and accounting standards provides Chinese firms with greater certainty and ease when considering Singapore for fundraising activities. This positions them to attract both regional and international investors through our platform.”
The comprehensive agreement package includes the appointment of DBS Bank as Singapore’s second offshore renminbi clearing bank, alongside over-the-counter bond market arrangements that grant institutional investors direct access to fixed-income products on China’s Interbank Bond Market (CIBM). These measures collectively enhance currency convertibility and reduce transaction costs for Chinese enterprises operating throughout Southeast Asia.
According to DBS representatives, the new clearing arrangements eliminate the need for intermediate US dollar conversions when exchanging regional currencies like Indonesian rupiah for Chinese yuan, resulting in substantial savings on exchange rate costs for multinational corporations.
Academic experts highlight the strategic timing of these developments. Dr. Xu Le, Lecturer at the National University of Singapore Business School, describes the initiatives as “a major step forward in capital market connectivity between Singapore and China, representing a milestone in bilateral securities market cooperation.” Meanwhile, Associate Professor Fu Fangjian of Singapore Management University notes that attracting Chinese listings will expand Singapore’s market liquidity while providing international investors convenient access to Asia’s growth narrative.
The strengthened financial partnership emerges as Chinese companies face increasing regulatory challenges in Western markets, positioning Singapore as a stable offshore hub that offers geopolitical risk mitigation through multi-jurisdictional listings. SGX’s established strengths in ESG frameworks and corporate transparency further enhance the appeal for Chinese firms seeking to align with globally recognized standards while maintaining regulatory compliance.