GF Securities and SGX to promote greater connectivity between China and Singapore’s capital markets

2020-09-29 10:21 GF Securities

GF Securities has signed a Memorandum of Understanding (MoU) with the Singapore Exchange (SGX), a leading exchange in the region, to promote greater connectivity between China and Singapore’s capital markets.

The MOU was announced at the 11th Singapore-Guangdong Collaboration Council meeting co-chaired by Guangdong Governor Ma Xingrui and Singapore’s Minister for Transport Ong Ye Kung.

Under the MOU, SGX will collaborate with GF Securities, whose wholly owned subsidiary, GF Futures (Hong Kong), has been a derivatives trading member of SGX since 2011, to expand its reach and services in Singapore and the region. This includes plans to build on its existing distribution of SGX’s derivatives products such as Chinese Renminbi futures, and facilitate access to SGX’s securities market. GF Securities will also raise awareness of multi-asset investment opportunities in both markets, in particular SGX-listed real estate investment trusts (REITs) and fixed income products.

GF Securities has been participating in SGX’s over-the-counter bond trading platform, and is looking to further increase its FX futures and commodity derivatives trading on SGX as well as promote the listing of fixed income products on SGX. Its subsidiary, GF Securities (Hong Kong) Brokerage Co., Ltd., plans to apply for SGX’s securities trading membership to offer its customers online brokerage services for SGX’s securities products.

Through its wealth management and asset management businesses, GF Securities will work with SGX to jointly engage institutional investors in both China and Singapore.

Sun Shuming, Chairman and General Manager of GF Securities, said, “Financial cooperation has been one of the brightest spots since China and Singapore established bilateral relations thirty years ago. This agreement underlines our commitment to actively participate in the Belt and Road Initiative and marks a new step in our internationalisation efforts. Stronger financial connectivity between China and Singapore not only enables Chinese enterprises and investors branching out overseas, but also introduces RMB assets to global investors.”

Loh Boon Chye, CEO of SGX, said, “We look forward to deepening our cooperation and relationship with GF Securities, whom we have worked closely with in the past decade. As investors increasingly adopt multi-asset strategies to achieve their investment objectives in the current low interest rate environment, this collaboration with GF Securities paves the way for its clients to access the wide range of investment products and opportunities offered by SGX, thereby enhancing capital flows between China and Singapore.”

As SGX’s derivatives trading member since 2011, GF Futures (Hong Kong)  hasestablished deep cooperation with SGX in various aspects. It accounts around 5% of the total market liquidity on iron ore swap, and its open position on SGX CNH futures also reaches 20% of market. GF Futures (Hong Kong) achieved the "Three Firsts" at SGX over the past two year including the largest Chinese FCMs in iron ore trading, the first among Chinese FCMs in the open position of RMB futures, as well as the first Chinese FCMs to participate in FlexC futures trading. It also won the honorary title of "Best Chinese FCMs (Iron Ore)" of SGX for two consecutive years in 2019 and 2020, and was awarded the honor of "Pioneer of Chinese FCMs (FlexC)" in 2019 in recognition of its special contribution.

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