Singapore - Singapore Exchange (SGX) announced on Friday it is ready to list, quote, trade, clear and settle securities denominated in Chinese yuan or Renminbi (RMB) to capitalise on the rapid growth of the offshore yuan market.
The initiative enhances opportunities for issuers and investors keen to participate in the internationalization of the RMB and the robust Chinese economy. SGX’s addition of RMB securities trading complements the offshore RMB bonds already listed on the exchange. Singapore Exchange (SGX) is also the world’s first exchange to offer the clearing of OTC FX forwards for RMB.
Issuers listing RMB securities on Singapore Exchange (SGX) can also choose to offer dual currency trading, giving their investors the flexibility to trade the security either in RMB or Singapore dollars.
“SGX, as the Asian Gateway, is committed to being the exchange of choice for issuers with RMB fund-raising needs and for investors who are keen to participate in the China growth story. The listing and trading of RMB securities on SGX will also extend Singapore’s position as an offshore RMB centre,” said Mr Magnus Bocker, CEO of Singapore Exchange (SGX).
The initiative expands the suite of foreign currencies supported by the Singapore Exchange (SGX), which currently includes the Australian dollar, Hong Kong dollar and the U.S. dollar.
Property firm ARA Asset Management Ltd had been planning to list a yuan-denominated real estate investment trust (REIT) in Singapore, sources told Reuters in March. But a first yuan-denominated IPO for the city-state is yet to come to the market.
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