Singapore and China expand renminbi clearing and capital market connectivity

On 15 December 2025, the Monetary Authority of Singapore announced a package of initiatives aimed at deepening financial cooperation with China. The announcements were made in Chongqing at the 21st Joint Council for Bilateral Cooperation meeting, co-chaired by Singapore Deputy Prime Minister and Minister of Trade and Industry Gan Kim Yong and China Vice Premier Ding Xuexiang. The measures focus on strengthening renminbi market infrastructure, widening capital market connectivity, and improving cross-border payment convenience.

A central element is the appointment of DBS Bank as Singapore’s second renminbi clearing bank. Singapore’s first renminbi clearing bank, the Industrial and Commercial Bank of China Singapore branch, has held this role since 2013. By adding a second clearing bank, the Monetary Authority of Singapore aims to support further growth of the offshore renminbi market in Singapore and facilitate the use of renminbi for trade, investment, and related economic activity. In practical terms, renminbi clearing capacity matters because it supports smoother settlement and liquidity for firms and investors using the currency in cross-border transactions.

The package also targets equity market access. The Monetary Authority of Singapore and the China Securities Regulatory Commission expressed support for Chinese corporates to undertake secondary listings on the Singapore Exchange. The stated rationale is to help these companies access international capital and diversify funding channels as they expand regionally. To support this pathway, the Monetary Authority of Singapore and the Singapore Exchange plan to extend Singapore’s secondary listing framework, including streamlined prospectus requirements, to cover companies listed on both the Shenzhen Stock Exchange and the Shanghai Stock Exchange. This is intended to reduce friction in the listing process while maintaining the regulatory structure that supports investor protection and market integrity.

In fixed income markets, the Monetary Authority of Singapore announced the commencement of an over-the-counter bond market arrangement involving Bank of China and DBS Bank. This arrangement enables designated banks in Singapore to provide institutional investors with access to selected fixed-income products on the China Interbank Bond Market. The initiative aligns with Singapore’s positioning as a fixed-income and asset management hub, and it reinforces the city’s role as a gateway for investors seeking exposure to Asian markets. For market participants, access channels of this kind can expand investable opportunities, diversify portfolio options, and potentially improve efficiency in cross-border bond transactions.

The cooperation package also includes a digital payments component through the launch of an eCNY pilot for Singapore travellers. The pilot enables travellers to open and top up eCNY wallets locally for merchant payments in China. The initiative is framed as a practical step to improve payment convenience for individuals when travelling. The plan is for the Industrial and Commercial Bank of China Singapore branch and the Bank of China Singapore branch to roll out this eCNY payment service in phases starting from the end of 2025. This reflects a broader trend of linking payment systems across borders and experimenting with digital currency use cases that fit everyday consumer needs.

Alongside the new measures, the media release highlights continued cooperation in green finance. The Singapore China Green Finance Taskforce and ongoing collaboration between the Monetary Authority of Singapore and the People’s Bank of China are described as advancing cross-border sustainable finance efforts. A specific focus is the Multi-Jurisdiction Common Ground Taxonomy, which is intended to promote interoperability between green taxonomies in different jurisdictions. The aim is to reduce fragmentation in sustainable finance classifications and enable smoother structuring, evaluation, and recognition of green transactions across markets. The release also notes recent market activity linked to this taxonomy, including listings of taxonomy-aligned green bonds on the Singapore Exchange in 2025.

The release further points to progress in indices and exchange-traded fund collaboration. It cites the launch of the CSI SGX Asia 100 Indices in November 2025 and indicates that the Monetary Authority of Singapore and the China Securities Regulatory Commission will work to facilitate more exchange-traded fund product launches. The intention is to expand the suite of exchange-traded fund offerings under the China Singapore exchange-traded fund product links. These links, which connect the Singapore Exchange with stock exchanges in Shenzhen and Shanghai, are presented as contributing to a growing range of cross-listed or cross-connected products, with reported growth in total assets under management.

Institutional cooperation is also formalised through an updated Memorandum of Understanding on Financial Cooperation under the China Singapore Chongqing Demonstration Initiative on Strategic Connectivity with the Chongqing Municipal People’s Government, marking the initiative’s tenth anniversary. The updated arrangement is intended to promote cooperation in cross-border financing and investments, financial technology innovation, and green finance, with the broader objective of facilitating financial services between China’s Western region, Singapore, and the Association of Southeast Asian Nations.

In combination, the initiatives represent a coordinated approach to deepening Singapore-China financial connectivity across banking infrastructure, capital markets, retail payments, and sustainable finance. Rather than focusing on a single channel, the package spans currency clearing capacity, equity and bond market access, digital payment functionality for travellers, and long-term cooperation mechanisms in green finance and market products. Strategically, this approach strengthens the practical “pipes” of cross-border finance while also expanding the range of instruments and services that can flow through them, supporting continued trade and investment linkages between the two economies.

Source: Singapore and China Deepen Financial Cooperation through New RMB and Capital Market Initiatives