Singapore Exchange (SGX) and China’s securities clearing firm have signed a deal to internationalise China’s bond market, including potentially developing exchange-traded funds linked to ChinaBond indices.
Under the terms of their memorandum of understanding, SGX will work with the China Central Depository & Clearing Co (CCDC) “to promote the internationalisation of China’s bond market, and provide Chinese bond products and services internationally”, the bourse says in a statement on December 12.
It adds that this is the Chinese company’s first comprehensive MoU of strategic cooperation with an international exchange, that covers the full lifecycle from issuance to settlement and custody”.