Bank of China launches global commodity business centres in Singapore

SINGAPORE -- Bank of China (BOC)launched two global commodity business centres in Singapore, the bank announced at the China and Singapore Commodity and RMB Summit on Friday.

The global energy commodity business centre and the global commodity repo centre based in Singapore are set up as BOC eyes Singapore's location as the crossroads of Southeast Asia's major shipping routes, the bank said.

It said that Singapore is also the largest global fuel trade as well as the world's second largest agribusiness trade centre and oil refining hub.

During the summit, BOC and International Enterprise Singapore (IE Singapore) also inked an Memorandum of Understanding (MoU) to collaborate on six key areas, said IE Singapore Chairman Seah Moon Ming in his opening speech.

Under the MoU, BOC will provide 50 billion Singapore dollars ($35.7 billion) of financial services to support enterprises from China and Singapore, which invest into countries along the "Belt and Road" region, while IE Singapore will facilitate the introduction of enterprises to BOC.

Other collaborations include setting up a new trade ecosystems in Singapore, and both parties will jointly promote RMB internationalization.

Singapore is the first regional financial center outside China to have a yuan clearing bank. And in 2014, it has surpassed London to become the second largest renminbi off-shore center in the world.

"We are optimistic that these initiatives will strengthen the relationship between IE Singapore and Bank of China, and also between Singapore and China. And in the process, assist Singapore enterprises in their international efforts, as well as Chinese enterprises internationalizing through Singapore," said Seah.