Singapore grants qualifying full bank license to China Construction Bank

The Monetary Authority of Singapore (MAS) announced on Tuesday the granting of a qualifying full bank (QFB) license to the China Construction Bank (CCB) under the China-Singapore Free Trade Agreement Upgrade Protocol.

This is the 10th QFB license granted to foreign banks in Singapore and the third QFB license to Chinese banks. According to the MAS, foreign full banks with QFB privileges may undertake universal banking and operate a total of 25 locations.

CCB Singapore Branch said in a press release that it will set up a commodity trade financing center, an investment banking transaction center and a fintech innovation center in the city-state, following the granting of the QFB license. The three new centers, together with its existing infrastructure construction service center and private banking business center, will jointly cover the major service areas of CCB Singapore Branch in the future.

The other two Chinese banks in Singapore with QFB licenses are the Bank of China and the Industrial and Commercial Bank of China.

The MAS also announced several initiatives to enhance financial cooperation between Singapore and China, including RMB cooperation, cooperation between Singapore and Chinese exchanges, and cooperation in the fields of digital finance and green finance.

Besides, the authority recognized Zhengzhou Commodity Exchange as a recognized market operator, allowing investors in Singapore access to the commodity derivatives markets in China.

Jacqueline Loh, deputy managing director of the MAS, said that financial services will play a critical role in facilitating a post-COVID-19 economic recovery, while RMB internationalization and the further opening-up of China's capital markets are two key trends shaping Asia's financial services landscape over the medium term.

"Singapore can play a useful role in this transformation, while supporting bilateral growth, and trade and investments between China and Singapore," she said.