HKEx and SGX collaborate on RMB internationalisation and connectivity

05 December 2013   Category: News, Hong Kong, Singapore   By Asia Asset Management

Hong Kong Exchanges and Clearing Limited (HKEx) and Singapore Exchange (SGX) agreed on December 4 to cooperate in several areas of common interest, which include promoting the internationalisation of the renminbi by exploring joint product development; enhancing connectivity through points of presence in each other’s data centres; collaborating on technology development and regulatory issues; and they may work closely in relation to extraterritorial market infrastructure regulation impacting the Asian region.

The cooperation underlines the growing importance of regional dialogue on topical issues and opportunities in an industry where rapid advancements in market technologies, the impact of supra-national regulations and the international evolution of the offshore renminbi market are on the agenda for market operators, regulators and participants alike.

HKEx Chief Executive Charles Li and SGX CEO Magnus Böcker signed a memorandum of understanding on the collaboration in Singapore on December 4.

Mr. Li said: "This MOU allows us to build on Hong Kong's position as the premier offshore renminbi centre by developing closer links with Singapore and helping regional investors deploy a growing pool of investable offshore renminbi. We are also very pleased to establish a framework for cooperation with SGX on global regulatory issues and technology development, two critical areas for exchanges."

Mr. Böcker added: "Our collaboration with HKEx, through new products and services available on both exchanges, is yet another example how the Asian gateway enables easier access to Chinese capital markets. By including regulatory collaboration in this partnership, we are paving the way for Asian markets to have a more prominent and unified voice regarding global developments and regulatory reforms."