SGX and GF Securities sign a MoU to advance the capital markets in China and Singapore

Singapore Exchange (SGX) announced signing a Memorandum of Understanding (MoU) with GF Securities Corporation to promote greater connectivity between Singapore and China’s capital markets.

Under the MoU, SGX will partner with GF Securities to expand its reach and services in Singapore. GF Futures (Hong Kong) Co., Ltd., GF Securities’ wholly owned subsidiary, has been a derivatives trading member of SGX for nine years since 2011. The plan for expansion includes building on the existing distribution of SGX’s derivatives products like Chinese Renminbi futures and grant access to the exchange’s securities market. GF Securities will also promote the multi-asset investment opportunities in both markets and in particular, SGX-listed real estate investment trusts (REITs) and fixed income products.

GF Securities has been taking part in SGX’s OTC bond trading platform. The company has been looking to further increase its FX futures and commodity derivatives trading on SGX and promote the listing of fixed income products on SGX. GF Securities (Hong Kong) Brokerage Co., Ltd., subsidiary of GF Securities, has plans to apply for SGX’s securities trading membership to offer its customers online brokerage services for SGX’s securities products.

GF Securities will partner with SGX through its wealth management and asset management businesses so together can engage institutional investors in both Chinese and Singapore markets.

Loh Boon Chye, CEO of SGX, commented:

Loh Boon Chye

Source: LinkedIn

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.

Sun Shuming, Chairman and General Manager of GF Securities, added:

Sun Shuming

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.