Singapore and Shanghai collaborate in financial services and innovation

Out-Law News | 21 Dec 2020 | 7:24 am | 1 min. read

Singapore and Shanghai-based institutions have signed a number of agreements on financial services and innovation at the second Singapore-Shanghai Comprehensive Cooperation Council (SSCCC) meeting.

Singapore's DBS signed a memorandum of understanding (MOU) with Shanghai Pudong Development Bank on financial technology and applications including data governance and intelligent risk management. UOB signed an agreement with Shenergy Group to establish a company to offer consumer financing that will help to drive the adoption of green energy products and services.

Singapore Exchange (SGX) signed a MOU with China Central Depository and Clearing (CCDC) on cross-border connectivity and the bond market in the Shanghai Free Trade Zone (SFTZ). It signed another agreement with Guotai Junan Securities for currencies and commodities-related businesses.

Government organisations, Singapore banks and SGX signed up to ten MOUs. Among them, Singapore Fintech Association (SFA) and Shanghai Fintech Industry Alliance (SFIA) signed an agreement for collaboration on fintech talent exchange and fintech platforms.

Mark Tan of Pinsent Masons MPillay, the Singapore joint law venture between MPillay and Pinsent Masons, the law firm behind Out-Law, said: "The signing of the various memorandums of understanding at the second Singapore-Shanghai Comprehensive Cooperation Council underscore the intention of both financial hubs to increase and enhance their collaboration and connectivity in the areas of financial services, technology and innovation. As major financial centres, both hubs possess complementary strengths and the increased cooperation as well as integration is likely to result in further synergies and benefits accruing to both sides, which will ultimately help boost economic growth for both hubs."

The SSCCC was established in 2019 and it focuses on six areas: belt and road initiative, financial services, technology and innovation, ease of doing business, urban governance and people-to-people exchanges. In the same year, the Shanghai free trade zone was expanded to include the Lingang New Area, with a particular focus on fintech firms.