SINGAPORE: Singapore Exchange Limited (SGX) and CITIC Securities Company Limited (CITIC Securities) have 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.

The agreement was sealed at a virtual signing ceremony attended by SGX’s CEO Loh Boon Chye and Head of Global Sales and Origination Chew Sutat in Singapore, as well as CITIC Securities’ Chairman Zhang Youjun and Member of the Executive Committee, Zou Yingguang in Beijing, together with SGX colleagues in China.

The latest partnership builds on the existing relationship between SGX and CITIC Securities, China’s largest securities firm with businesses that span from securities brokerage, investment banking, fixed income, securities finance, equity derivatives and asset management.

CITIC Securities’ wholly-owned subsidiary, CITIC Futures Co., Ltd, one of the largest futures firm in China, is a derivatives trading member of SGX. CITIC Securities’ Singapore subsidiary, CLSA Singapore Pte Ltd, is also a securities trading and clearing member of SGX.

Under the agreement, both parties will explore the feasibility of developing and listing new bond and risk management products for international participants who are looking to invest in China’s bond market, which is the second largest globally.

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, which is the most international in Asia with 80% of the total listed bonds from foreign issuers.

Both parties will work together to promote SGX’s 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.

As one of Asia’s largest REIT and property trusts markets with a combined market capitalisation of over S$85 billion, Singapore presents opportunities for Chinese asset owners to tap international capital. 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, “The signing of this strategic cooperation agreement with SGX, one of Asia’s most influential exchanges, is a significant milestone for both parties. Moving forward, CITIC Securities will continue to play our part in bridging China and Singapore’s financial markets. This agreement will pave the way for both SGX and CITIC Securities to deepen our collaboration in diverse areas such as the overseas issuance of Chinese bonds, ETFs, capital market development projects, commodities and related derivative products, as well as augmenting SGX’s prominence and reputation in China’s capital markets.”

SGX CEO Loh Boon Chye said, “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. Building on our strengths in pioneering and developing Asia’s global REIT hub, and the growth trajectory of SGX’s fixed income, currencies and commodities business, I am excited about the new possibilities that this collaboration will bring to the Asian financial markets.”