China gains access to Asia’s most international marketplace, SGX

Rick Steves

Market participants in Mainland China will have real-time access to prices in Asia’s most international marketplace.

china

Mainland China has gained new access to securities market data via Singapore Exchange (SGX), following a partnership with China Investment Information Services, a subsidiary of Shanghai Stock Exchange’s (SSE).

The deal includes the distribution of SGX’s securities market data within Mainland China in real-time, thus providing investors with access to data on listed companies across wide-ranging industries.

A particularly attractive investment product for Chinese investors is SGX’s REITs (S-REITs) and Property Trusts.

Singapore has the second largest REITs market with 42 S-REITs and Property Trusts in Asia, with a combined market capitalization of over S$110 billion.

Market participants in Mainland China will have real-time access to prices in Asia’s most international marketplace.

China Investment Information Services will be responsible for the distribution, marketing, and sales of key SGX securities data to market data vendors, brokers and media channels in China. Singapore Exchange will support the initiative with on-the-ground investor education.

Ng Kin Yee, Managing Director, Head of Data, Connectivity and Indices at SGX, said: “Market participants require reliable and timely information to make investment decisions, and we are excited to bring our international offerings to investors in China. As we expand our partnership with SSE, we look forward to strengthening the link between Singapore and China’s capital markets and further support China’s internationalisation efforts.”

Wang Wei, Managing Director, China Investment Information Services Ltd, said: “We are very pleased to cooperate with Singapore Exchange. We hope that by availing more market information products, Chinese market participants will have better knowledge and understanding of portfolio management. We are also looking forward to reinforcing our partnership and exploring further collaboration in other areas.”

In October, the China Banking and Insurance Regulatory Commission approved plans by Goldman Sachs to acquire a majority stake in its mainland securities venture, becoming the latest global bank to take advantage of Beijing’s commitment to ease foreign-ownership restrictions.

UBS was the first foreign-controlled brokerage approved by the securities regulator to upgrade its ownership in a local joint venture to controlling stake since the mitigated rules were implemented in late 2017.

JPMorgan has applied to win an auction to purchase the shares needed for a 70 percent majority equity stake in its Chinese futures joint venture. The lender was bidding for an extra 20% stake in its mainland business, J.P.Morgan Futures Co., a joint venture between the bank and its local partner.

China has repeatedly pledged to open its financial markets, including allowing foreign firms to own as much as 51 percent of their securities ventures, up from the previous 49 percent ceiling.

In September, Colt Technology Services expanded its portfolio of Market Data services to incorporate Mainland China through seven exchanges.

The firm’s Market Data services are now available directly from within Hong Kong Stock Exchange’s (HKEX), Shanghai Stock Exchange (SSE), Shenzhen Stock Exchange (SZSE), China Financial Futures Exchange (CFFEX), and Zhengzhou Commodity Exchange (ZCE).

Market Data services for the Shanghai Futures Exchange (SHFE), Dalian Commodity Exchange (DCE) and Shanghai International Energy Exchange (INE) will be added in Q3 2021.

Colt is already well established in Europe, North America, and Asia, as it provides comprehensive market data coverage for stock, futures, and commodity exchanges.

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