and facilitate international trade, the Monetary Authority of Singapore (MAS) has developed new initiatives to influence and support trade. Singapore and China have agreed on new initiatives to strengthen cooperation on financial sector development and regulation. The new initiatives will further promote the international use of the Renminbi (RMB) through Singapore.
China will extend its Renminbi Qualified Foreign Institutional Investor (RQFIll) program to Singapore, with an aggregate quota of RMB 50 billion. This will allow qualified Singapore- based institutional investors to channel offshore RMB from Singapore into China's securities markets. RQFIl licence holders may also issue RMB investment products to the broad pool of investors in Singapore, using the RQFIl quota. The RQFIl program will help to diversify the base of investors in China's capital markets and promote adoption of the RMB for investment
Singapore will be given consideration as one of the investment destination under the new Renminbi Qualified Domestic Institutional Investor (RQDI) scheme. This will allow qualified Chinese institutional investors to use RMB to invest in Singapore's markets. The measure will help to broaden the universe of assets available to Chinese investor as well as the investor base for Singapore's capital markets.
China and Singapore will introduce direct currency trading between the Chinese Yuan and Singapore Dollar. New measures will allow cross-border flows of RMB between Singapore and Suzhou Industrial Park (SIP) as well as Tianjin Eco-City TEC)
In addition, Singapore and china have agreed on and announced measures to strengthen regulatory cooperation. Relevant agencies are in discussions to facilitate China-incorporated companies which have received regulatory approval to list directly in Singapore, instead of through entities incorporated outside China
Furthermore, the Singapore Exchange and Shanghai Future Exchange have signed an MOU to strengthen collaboration in the joint development of commodity derivatives