China Construction Bank Wins Qualifying Full Bank License in Singapore
(14 December 2020 – Singapore) Monetary Authority of Singapore (MAS) has awarded a qualifying full bank (QFB) licence to China Construction Bank under the China-Singapore Free Trade Agreement Upgrade Protocol, marking the 10th foreign bank to hold such license in the country.
The licence allows for greater operational privileges, offering a full suite of banking products that are permitted under the Banking Act. The Bank's Singapore branch will seek to set up a commodity trade financing centre, investment banking transaction centre and fintech innovation centre.
Zhengzhou Commodity Exchange has also been recognised as a market operator, allowing investors in Singapore access to the commodity derivatives markets in China.
The announcements follow China Securities Regulatory Commission's approval for the establishment of DBS Securities (China) in August this year.
“RMB internationalisation 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,” said MAS deputy managing director Jacqueline Loh.
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