Wed, Dec 09, 2020 – 5:50 AM
THE Monetary Authority of Singapore (MAS) has awarded a qualifying full bank (QFB) licence to China Construction Bank, under the China-Singapore Free Trade Agreement Upgrade Protocol, it said on Tuesday.
In its press statement, MAS also said that Zhengzhou Commodity Exchange has been awarded recognition as a recognised market operator, allowing investors in Singapore access to the commodity derivatives markets in China. The announcements follow China Securities Regulatory Commission’s approval for the establishment of DBS Securities (China) in August this year.
China Construction Bank said in a statement on Tuesday that the QFB licence allows for greater operational privileges offering a full suite of banking products that are permitted under the Banking Act.
“With the award of the QFB licence, the branch will be focusing its efforts in establishing a commodity trade financing centre, investment banking transaction centre and fintech innovation centre in Singapore,” it said.
Singapore and China also discussed on Tuesday initiatives to enhance financial cooperation during the 16th Joint Council for Bilateral Cooperation (JCBC) meeting between the two countries.
These initiatives include digital finance, green finance, cooperation between Singapore and Chinese exchanges and yuan cooperation, MAS said.
For instance, a pilot on paperless cross-border trade is on track to commence as early as the first quarter of 2021. The project aims to achieve mutual recognition of electronic trade documents such as electronic Bill of Lading for seamless cross-border trade transactions.
The JCBC was co-chaired by Singapore’s Deputy Prime Minister and Finance Minister Heng Swee Keat, and China’s Executive Vice-Premier of the State Council Han Zheng.