Singapore Exchange Limited (SGX) and China’s largest brokerage, CITIC Securities, yesterday signed a wide-ranging strategic cooperation agreement to collaborate across multiple areas, including fixed income, currencies and commodities (FICC), real estate investment trusts (REITs), as well as equity, debt capital markets and more.

Under the agreement, which was signed at a virtual signing ceremony yesterday, both parties will explore the feasibility of developing and listing new bond and risk management products for international participants looking to invest in China’s bond market.

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The new expanded partnership builds on the existing relationship between SGX and CITIC Securities, with businesses spanning from securities brokerage, investment banking, fixed income, securities finance, equity derivatives and asset management.

The collaboration seeks to bring CITIC Securities’ expertise in Chinese government and financial bonds as well as asset-backed securities, together with SGX’s debt securities platform, the most international in Asia with 80% of the total listed bonds from foreign issuers.

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REIT focus

Both parties will also jointly promote SGX’s  real estate investment trusts (REITs) and large capitalisation stocks in the Mainland China and Hong Kong markets, as well as engage and educate Greater China companies on the advantages of raising funds in Singapore’s capital markets.

The collaboration also seeks to build out the REIT platform with new products that can enable greater investor participation in Singapore and Greater China.

CITIC Securities Chairman Zhang Youjun said that the signing of this strategic cooperation agreement with SGX, one of Asia’s most influential exchanges, is a significant milestone for both parties.

“We are deeply honoured to be collaborating with CITIC Securities, China’s leading securities firm. The ongoing pandemic has not dampened both parties’ determination in working together to develop new financial products and support China’s continuous internationalisation and opening of its financial markets,” SGX CEO Loh Boon Chye says.