SINGAPORE: MAS Announces Singapore and China Strengthen Cooperation in Green Finance and Capital Market Linkages

Wednesday November 2 2022

On 1^st November 2022, the Monetary Authority of Singapore (MAS) announced a new initiatives to expand cooperation in green finance and deepen capital market linkages with China.

The initiatives are:

China – Singapore Green Finance Taskforce (“Taskforce”). MAS and the People’s Bank of China (PBC) will establish a Taskforce to deepen bilateral cooperation in green finance and facilitate greater public-private sector exchanges to better mobilise private capital for the region’s sustainable development needs. The Taskforce will explore collaboration in areas such as standards and definitions, green and transition financing solutions, data and technology enablers to catalyse green financing flows, and enhance green investment opportunities in China and the region.

Exchange Traded Funds (“ETF”) Product Link. The Singapore Exchange (“SGX”) and Shenzhen Stock Exchange (“SZSE”) will welcome the first three participating ETFs under the ETF Product Link by year-end. These participating ETFs are launched under collaborations between China Southern Asset Management and CSOP Asset Management Singapore. This ETF Product Link will allow investors in China and Singapore to access ETF investment opportunities in each other markets.

Low Carbon Index Family by Chinese and Singapore Exchanges. The SGX, Shanghai Stock Exchange and SZSE will jointly launch a Low Carbon Index Family by year-end, that will serve as a benchmark for fund managers to launch new green funds focused on China, ASEAN and other countries in Asia. This will raise investor interest in green investment opportunities in region, and channel capital towards the region’s leading sustainable firms.

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