Bank of China and SGX agree to develop RMB market

Sign MoU to grow Chinese business.

Bank of China and Singapore Exchange have signed a memorandum of understanding to jointly explore the development of Renminbi products and services in Singapore. Some 6% of the 1,400 bonds listed on SGX are denominated in RMB.

They will also promote SGX products in China and undertake educational programs. BOC will move to expand its role in SGX's markets.

Singapore is a leading offshore RMB hub outside Greater China. It has sought to strengthen this position by beginning to trade RMB securities in August and launching depository services for RMB bonds in May.

Bank of China reaffirmed its commitment to promoting the internationalization of the Renminbi and related products. It noted that the collaboration with SGX confirms its commitment to Singapore's financial markets, particularly the securities and derivatives exchanges.

SGX CEO Magnus Bocker said the exchange will benefit from greater access to China and more tools to manage customer risks.

SGX is Asia's most internationalized exchange with over 40% of companies listed on SGX originating outside of Singapore.