By P.R. Venkat
SINGAPORE--The Hong Kong Exchanges & Clearing Ltd. (>> Hong Kong Exchanges and Clearing Limited) and Singapore Exchange Ltd. (S68.SG) have entered into an agreement to jointly develop products that will promote the internationalization of the yuan.
In a joint statement both the exchanges said that the two have also agreed to boost connectivity by establishing a presence in each other's data centres and collaborating on technology development.
The agreement will allow both the exchanges to build on Hong Kong's position as the premier offshore yuan centre, HKEx Chief Executive Charles Li said in the statement. He said developing closer links with Singapore will also help regional investors deploy a growing pool of investable offshore yuan.
"Our collaboration with HKEx, through new products and services available on both exchanges, is yet another example how the Asian Gateway enables easier access to Chinese capital markets," Singapore Exchange chief executive Magnus Bocker said.
The Asian Gateway refers to the Singapore Exchange's plan to place Singapore as a destination for regional exchanges to provide platforms for investors across Asia, to provide services such as raising funds and listing on the exchange.
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