Haitong International establishes first overseas company in Singapore
23 January 2014
Category: News, Asia, China, Hong Kong, Singapore
By Asia Asset Management
Haitong International Securities Group Limited (Haitong International), the overseas business arm of Chinese securities firm Haitong Securities Co Ltd, announced the official opening of its first overseas company – Haitong International Securities Group (Singapore) Pte Ltd (Haitong Singapore) – in Singapore on January 22.
Having been granted a Capital Markets Services License for dealing in securities and trading in futures contracts for its subsidiary by the Monetary Authority of Singapore (MAS) in January 2014, Haitong Singapore aims to provide better access to financial products available in Singapore, Hong Kong and China through its comprehensive platforms and expertise to corporate and institutional investors based in Southeast Asia and the Middle East.
Deputy Chairman and Chief Executive Officer of Haitong International Dr. Lin Yong said: “Singapore is a renowned financial hub with a diversified investor base and deep liquidity in capital markets. Together with its robust regulatory environment, these factors form an important foundation for Haitong International’s global expansion strategy, and enables overseas investors’ participation in China’s growth story.”
He continued: “With the internationalisation of the renminbi and the strengthened cooperation between Singapore and China to promote use of the currency, we believe the demand for RMB-denominated products will continue to grow. With a strong commitment to innovation, extensive market knowledge and robust trading infrastructure, Haitong International is poised to play a unique role in supporting this demand in the long run, as well as contributing to the future development of RMB markets in Singapore. Haitong International will leverage Singapore’s pool of professional talent and robust regulatory environment to further expand its overseas business.”
As the RMB continues to internationalise, both Chinese companies and Chinese investors are keener than ever to explore the international financial markets. At the same time, overseas investors’ demand for RMB-denominated products has been surging. Against this backdrop, Singapore is seen as one of the few key financial markets actively preparing itself to become a key offshore RMB trading and clearing hub. According to latest data from the MAS, the total amount of RMB deposits in Singapore has grown 70% over a ten-month period to 172 billion RMB as of October 2013. Singapore was also awarded 50 billion RMB in the latest round of the RQFII programme in October 2013, thus enabling Singapore-based corporates to gain greater access to China’s securities market. According to latest data from ICBC Singapore, the total amount of RMB cleared in Singapore in the last seven months of 2013 since the launch of clearing arrangement in May 2013 amounted to 2.6 trillion RMB, cementing Singapore’s role as one of the key offshore clearing centres for RMB globally.
“Being a leading securities company with strong parent backing, profound knowledge of the China market and unique strength and expertise in RMB-denominated products, we expect to gradually bring our array of RMB-denominated products, as well as other asset management and corporate finance services to investors across Southeast Asia and the Middle East in future, with Singapore as a regional hub. We are keen to be part of the success story for Singapore as the offshore RMB hub, and to become the premium investment partner of investors who seek access to the China and RMB growth story amid the changing market dynamics,” Dr. Lin declared.
As a pioneer in RMB-denominated products, Haitong International launched the first RMB-denominated and settled public fund in Hong Kong in 2010, and became the first Mainland-funded financial institution based in Hong Kong to obtain Qualified Foreign Institutional Investor (QFII), RMB Qualified Foreign Institutional Investor (RQFII) and RMB Qualified Foreign Limited Partner (RQFLP) qualifications in 2012. With the China Securities Regulatory Commission (CSRC) increasing the scale of QFII and RQFII, Haitong International expects to launch more RMB-denominated products in the future.