Immigrate to Singapore focus on Singapore immigration economy: Monetary Authority of Singapore (MAS): RQFII investment quota will double, increasing from 50 billion RMB to 100 billion RMB.
The Monetary Authority of Singapore (MAS) announced several new financial cooperation initiatives reached between China and Singapore on the 9th, including the expansion of the China-Singapore cross-border RMB business pilot to Chongqing, and a significant increase in the RMB Qualified Foreign Institutional Investor (RQFII) quota granted to Singapore.
First, the scope of the China-Singapore cross-border RMB business pilot will be expanded from the current cities of Suzhou and Tianjin to Chongqing, the location of the third China-Singapore intergovernmental cooperation project. This move means that Singaporean banks will be able to provide cross-border RMB loans to Chongqing enterprises, and Chongqing enterprises will be able to issue RMB bonds in Singapore.
MAS stated that the expansion of the cross-border RMB business pilot will further promote the use of RMB in Singapore, provide more financing solutions for Chinese enterprises, and strengthen financial ties between Singapore and Western China.
Second, the RMB Qualified Foreign Institutional Investor (RQFII) quota granted to Singapore will increase from 50 billion RMB to 100 billion RMB. The increase in the quota will enable Singaporean fund managers to offer more RMB-denominated fund products to investors, while also helping to enhance liquidity in China's capital markets and expand the RMB investor base.
Third, the Monetary Authority of Singapore and the People's Bank of China will renew and strengthen the bilateral currency swap agreement. By providing timely liquidity support to market participants, the new bilateral currency swap agreement will further consolidate Singapore's position as an offshore RMB center. The Monetary Authority of Singapore and the People's Bank of China signed a bilateral currency swap agreement in March 2013, which is set to expire in March 2016.
In addition, China and Singapore will deepen cooperation related to capital markets. The China Securities Regulatory Commission (CSRC) will hold regular high-level dialogues with the Monetary Authority of Singapore to jointly explore regulatory cooperation and product development, and strengthen capital market cooperation between the two countries. This move will help Singaporean financial institutions collaborate with Chinese policy banks, enterprises, and investors under the framework of the "Belt and Road" strategy.
Ravi Menon, Managing Director of the Monetary Authority of Singapore, stated that Singapore and China have achieved significant results in financial cooperation, which will benefit Singapore while also supporting the steady progress of RMB internationalization.