Financial cooperation between China and Singapore promotes connectivity between China and ASEAN
From April 20 to 21, the Fifth China-Singapore Financial Summit was held simultaneously in Chongqing and Singapore.
As the third inter-governmental cooperation project between China and New Zealand, the China-Singapore (Chongqing) Demonstration Project on Strategic Connectivity, launched in November 2015, is an international cooperation platform covering the entire western region and even the wider region with Chongqing as its operation center. The China-Singapore Financial Summit is an important part of it.
The China-Singapore Financial Summit has become an important platform for exchanges and cooperation between the financial sectors of China and ASEAN. Statistics show that over the past seven years and more since the implementation of the China-Singapore connectivity project, China-Singapore financial cooperation has been deepened and strengthened. China and Singapore have jointly launched 74 open and innovative financial policies, 52 projects, 35 innovation cases, and established 21 institutions in each other's countries.
As China-Singapore relations have been upgraded from a "comprehensive cooperative partnership advancing with The Times" to an "all-round high-quality forward-looking partnership", the curtain has been set on high-quality financial cooperation between China and Singapore .
Policies support China-Singapore financial cooperation
"Since 2015, China's Chongqing and Singapore have worked together in practical cooperation and opening-up, promoted the China-Singapore (Chongqing) Demonstration Project on strategic connectivity and achieved remarkable results, effectively promoted the connectivity, development and prosperity between China's western region and Singapore and other ASEAN countries, and is becoming a new model and benchmark for high-quality international cooperation on the Belt and Road Initiative." Lu Lei, deputy director of the State Administration of Foreign Exchange, said at the opening ceremony of the fifth China-Singapore Financial Summit.
In recent years, cooperation between financial institutions of China and Singapore has become closer, with more channels for cross-border investment and financing, more convenient cross-border use and settlement of RMB, and positive progress has been made in cooperation in green finance, fintech and digital finance.
According to the new positioning of China and Singapore as an "all-round high-quality forward-looking partnership", Lu said China and Singapore will strengthen all-round innovation cooperation in trade and investment, green and digital economy, finance and other fields. The People's Bank of China and the SAFE will continue to strengthen financial policy innovation and supply, and provide strong financial support for high-quality cooperation between China and Singapore.
High-quality cooperation between China and Singapore provides strong financial support.
To be specific, first, actively promote high-quality financial cooperation between Singapore and Singapore. Singapore is an important international financial center and an important hub for Belt and Road cooperation. Last year, the People's Bank of China and the Monetary Authority of Singapore renewed the bilateral currency swap agreement. Going forward, we will steadily advance cooperation in local currency settlement. Singapore is also an active participant in China's domestic bond market. The People's Bank of China and the State Administration of Foreign Exchange will further promote the connectivity of China-Singapore financial markets, continue to optimize the fund management policy for foreign investors investing in China's bond market, and provide more convenience for Singapore and other foreign investors.
Second, we will actively support the economic and financial development of Chongqing and the construction of Chengdu-Chongqing twin city economic circle. Implement prudent monetary policy accurately and effectively, guide financial institutions in Chongqing to make good use of policy-oriented development financial instruments, financial support for inclusive small and micro, green development and other policies and measures, and maintain reasonable growth of credit funds. We will support Chengdu-Chongqing in jointly building a western financial center, optimize the centralized operation and management of cross-border local and foreign currency funds of multinational corporations, and encourage more financial innovation policies to be tested in Chengdu-Chongqing.
Third, actively contribute to the in-depth development of China-Asean cooperation. Asean has been China's largest trading partner for three years in a row. The People's Bank of China and the State Administration of Foreign Exchange will effectively implement the Regional Comprehensive Economic Partnership Agreement, further facilitate cross-border trade, investment and financing, and promote mutually beneficial economic growth in the region. At the same time, we will continue to deepen financial cooperation with ASEAN countries to facilitate connectivity and common development between China and ASEAN.
The new land-sea Channel financial services consortium was established
In December 2021, with the approval of The State Council, six ministries and commissions of the State and the governments of Sichuan and Chongqing jointly issued the Plan for the Construction of the Western Financial Center by Chengdu-Chongqing, which clearly proposed to deepen the connectivity of domestic and foreign financial markets, and explore the cooperation between Chengdu-Chongqing region and Singapore in such businesses as bonds, funds, wealth management and bills.
At the briefing on the outcome of the Fifth China-Singapore Financial Summit, Wu Heng, deputy director of Chongqing Financial Supervision Bureau, said that the land-Sea New Channel financial services consortium was officially established. The establishment of the consortium became a highlight of the summit.
The consortium was jointly initiated by Chongqing local legal person Bank, policy banks and Chinese and foreign-funded commercial banks in Chongqing. Financial institutions along the Western land-Sea New Corridor participated in the consortium, and 56 member institutions jointly established the consortium, marking the coverage of Chongqing, Sichuan, Guangxi and other provinces along the corridor, and more than 3,000 service outlets. A trans-regional and cross-border financial service network system covering the whole area of the new channel has taken shape. It will further optimize the construction of the new land-sea channel for financial enabling and the two-way open channel for efficient cross-border financing of western financial centers.
It is understood that the consortium will promote the member institutions to share the service network, realize the linkage of China-foreign investment, offshore and onshore, institutional network credit information, and explore the formation of a comprehensive market trading network and financial service system covering the countries and regions along the western land-Sea New Corridor.
The consortium will open up internal financial credit, carry out inter-industry cooperation, and solve the problem of fragmentation and decentralization of financial services caused by information asymmetry between domestic and foreign financial institutions. At the same time, enterprises should match economic, trade and investment cooperation to solve the problem of finding cross-border trade cooperation difficult caused by the information asymmetry of cross-border economic and trade cooperation between enterprises.
In addition, the consortium will provide more localized financial services, sharing corporate financial credit and demand information held by domestic and foreign financial institutions.
At present, the consortium relies on local legal person financial institutions linkage Sichuan, Guangxi and other places of legal person institutions; Relying on large financial institutions such as Chinese policy banks, development banks and commercial banks, as well as international financial institutions such as DBS and Standard Chartered, they are working with local branches in countries along the land-sea Corridor. The network now covers countries along the western land-Sea Corridor.
We will build a green financial service system that supports high-quality development
In the context of "double carbon", the China-Asean green finance market is increasingly connected, showing great cooperation potential.
As early as August 19, 2022, the People's Bank of China and six ministries and commissions issued the Overall Plan for Building Chongqing Green Finance Reform and Innovation Pilot Zone, marking the official launch of Chongqing Green Finance Reform and Innovation Pilot Zone. On December 16, 2022, the China-Singapore Green Finance Working Group was announced. Mr. Zhang Yulong, chief representative of China Representative Office of the Financial Authority of Singapore, said that the Sustainable finance Classification Directory of Singapore has completed the formulation of part of industry standards and plans to complete all planned industry standards and put them into use by the end of 2023. In the next stage, we hope to strengthen the connection with the green finance classification standards of China and other major economies.
During the summit, participants discussed the path of cross-border cooperation between China and ASEAN on green finance, promoted the convergence of standards, fully tapped the opportunity of Chongqing Green Finance Reform and Innovation Pilot Zone, proposed the path of green finance system reform, and issued policy suggestions on improving the construction of ESG supervision system and carbon neutrality.