Singapore Exchange (SGX) and Nanhua Futures Co., Ltd (Nanhua Futures) will be working together to help investors capture investment opportunities related to China’s Belt and Road Initiative (BRI).
The BRI is the Chinese government’s long-term development strategy to connect about 65 countries in Asia, Africa and Europe, with the aim to open up new trade corridors and strengthen infrastructure, trade and investment links. According to the World Bank Group[1], BRI economies account for one-third of global GDP and trade, close to two-thirds of world population and three-quarters of known energy reserves.
As part of the partnership, SGX’s index business, SGX Index Edge will work with Nanhua Fund, the wholly-owned subsidiary of Nanhua Futures, to identify the types of indices and their respective methodologies that could be in demand by investors in China and overseas. Specifically, both parties will design and develop indices that are representative of the BRI.
In addition, SGX and Nanhua Futures will jointly conduct and promote equity research on Singapore stocks that would be of relevance and interest to Chinese and international investors.
Ng Kin Yee, Head of Market Data and Connectivity, SGX, said, “There are many ASEAN and China plays listed on SGX, which are linked and poised to benefit from BRI. These companies are from a variety of sectors including financials, energy, infrastructure, industrials, materials, consumer and IT. Utilising SGX Index Edge’s index-calculation expertise, coupled with Nanhua’s research capabilities in China, we are looking to compile an index for investors to track and capture investment opportunities arising from the BRI.”
Luo Xufeng, General Manager, Nanhua Futures said, “Nanhua Futures have been involved in the development of commodity indices for over 10 years and have deep experience in this area. Together with SGX, Nanhua Futures and Nanhua Fund will be embarking on a bold attempt to jointly develop a Belt and Road (BRI) index. We look forward to working together and leveraging our respective expertise, to develop an index that will not only provide a BRI reference for global investors but also enable them to participate in the internationalisation of China.”
