The Monetary Authority of Singapore (MAS) announced new initiatives to expand cooperation in green finance and deepen capital market linkages with China.
The initiatives include the establishment of the China-Singapore Green Finance Taskforce (Taskforce) which will see the MAS and the People’s Bank of China establish a Taskforce to deepen bilateral cooperation in green finance and enable greater public-private sector exchanges to mobilise private capital for the region’s sustainable development needs.
The Taskforce will also 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.
In addition, the Singapore Exchange (SGX), Shanghai Stock Exchange and Shenzhen Stock Exchange (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.
It is hoped this move will raise investor interest in green investment opportunities in the region, and channel capital toward the region’s leading sustainable firms.
Leong Sing Chiong, Deputy Managing Director (Markets and Development), MAS, said: “The launch of the Green Finance Taskforce is very timely, as finance plays a key role in catalysing our transition to a more sustainable future.”
This collaboration in green finance builds on earlier initiatives to strengthen RMB and capital market connectivity. MAS will continue to work closely with our central bank and regulatory counterparts in China to deepen our financial cooperation and unlock new growth drivers for our economies.”