SINGAPORE (Apr 28): Singapore Exchange (SGX) and CITIC Securities, China’s largest brokerage by market value, signed a wide-ranging strategic agreement to collaborate across multiple areas on Monday.

The agreement will cover aspects including fixed income, currencies and commodities (FICC), Real Estate Investment Trusts (REITs), equity, debt capital markets, and more.

The collaboration seeks to marry CITIC Securities’ expertise in Chinese government and financial bonds as well as asset-backed securities, together with SGX’s debt securities platform, which is the most international in Asia.

Under the agreement, both parties will explore the feasibility of developing and listing new bond and risk management products for international participants who are looking to invest in China’s bond market. 

Both parties will also work together to promote SGX’s REITs and large capitalisation stocks to investors based in China and Hong Kong, as well as engage and educate Greater China companies on the advantages of raising funds in Singapore’s capital markets.

The collaboration also seeks to build out the REIT platform with new products that can enable greater investor participation in Singapore and Greater China.

The latest partnership builds on an existing relationship between SGX and CITIC Securities. The latter’s wholly-owned subsidiary, CITIC Futures, one of the largest futures firms in China, is a derivatives trading member of SGX.

CITIC Securities’ Singapore subsidiary, CLSA Singapore, is also a securities trading and clearing member of SGX.

“The signing of this strategic cooperation agreement with SGX, one of Asia’s most influential exchanges, is a significant milestone for both parties. Moving forward, CITIC Securities will continue to play our part in bridging China and Singapore’s financial markets,” says CITIC Securities Chairman Zhang Youjun.

“Building on our strengths in pioneering and developing Asia’s global REIT hub, and the growth trajectory of SGX’s fixed income, currencies and commodities business, I am excited about the new possibilities that this collaboration will bring to the Asian financial markets,” says Loh Boon Chye, CEO of SGX.

The agreement was sealed on Monday at a virtual signing ceremony attended by Loh Boon Chye and Chew Sutat, SGX’s Head of Global Sales and Origination in Singapore, as well as CITIC Securities’ Chairman Zhang Youjun and Member of the Executive Committee, Zou Yingguang in Beijing, together with SGX colleagues in China.

As of 3.17pm, SGX shares are trading at 2 cents lower, or 0.2% down, at $9.75.