STRENGTHENING FINANCIAL Participation
With a number of green finance and money markets initiatives, bilateral economic cooperation will grow.
One tie-up between the central banks of China and Singapore aims to spur natural funding flows. By the end of this year, the Monetary Authority of Singapore announced in a press release on Monday that the practice would be finished.
This will make cross-border alternative loans, natural bond issuance, and account investments easier to compare the natural taxonomies of Singapore and China.
In an effort to expand the exposure to China’s bond market for foreign shareholders, MAS and the People’s Bank of China are even conducting a pilot project with the banks of both nations. It will utilize the existing “over-the-counter” bond business model in China.
Other projects include expanding the range of products on the Shenzhen and Shanghai bourses ‘ Exchange Traded Funds ( ETF ) Product Links, as well as facilitating financial institutions’ access to the Singapore and China markets.
FACILITATING Business AND Opportunities
In trade, Singapore and China reiterated their commitment to the China-Singapore Free Trade Agreement ( CSFTA ) Further Upgrade Protocol, which is set to enter into force on Dec 31, 2024, said Singapore’s Ministry of Trade and Industry ( MTI ) in a separate press release.
China’s primary extensive diplomatic free trade agreement with an Asian nation is the CSFTA. It became effective in 2009, and the most recent prepared improvements were unveiled at JCBC last year.
According to MTI, Singapore investors and service providers can anticipate “more democratic and open rules” that will allow them to conduct business with China.
The government added that Singaporean businesses will also gain greater access to China’s economy through a “negative listing” strategy, which means that all industries are automatically opened to investors except those that are exclusively listed.
” Importantly, China commits to not limiting foreign ownership restrictions for Singapore buyers in 22 areas such as design, shopping &, wholesale, and architectural &, urban planning service”, MTI said.
The Belt and Road Initiative is being promoted in a second deal. It aims to strengthen Singapore and China’s cooperation in places such as policy cooperation, network connectivity, bilateral deal and people-to-people markets.
“( This ) will provide clearer policy guidance for the next phase of high-quality Belt and Road development, further promoting the joint growth of China, Singapore, and regional countries”, said Mr Ding.
Since 2013, Singapore has been China’s largest foreign investment in terms of purchase travels, and China has been Singapore’s largest goods trading partner. Bilateral deal in 2023 amounted to US$ 108.39 billion, according to China’s international government.