(Yicai) Oct. 16 -- China and Singapore will further expand the connectivity of their capital markets in the future, and the Singapore Exchange will help Chinese and other overseas companies to raise money locally, according to the chief executive of the SGX.

The SGX has developed links with more exchanges in recent years, such as with the Shenzhen and Shanghai bourses in exchange-traded funds, Loh Boon Chye told Yicai recently. These ETFs are a key interconnection between the Singapore and Chinese mainland exchanges, added Chen Qing, China director and president of the SGX.

Following the listing of three ETFs last year, more will likely start trading by the end of this year, giving additional options to markets and investors while reducing risk and cost, Chen added.

The number of China-related ETFs on the SGX has increased from three to nine in the past two years. SGX's ETFs size is around SGD12 billion (USD8.8 billion), with China funds accounting for nearly 10 percent. Next month, the Fullgoal and CSI 1000 Index ETFs are expected to be listed on the SGX and raise the ratio to almost 24 percent, Yicai learned.

In the past two years the SGX has also tried to attract Chinese businesses to go public in Singapore via initial public offerings and secondary listings.

Though companies face financing challenges, the recovery in the IPO market is promising, Loh noted. The central banks of many countries have hiked interest rates, but the global economy remains resilient, and firms are still growing and investing, he added, noting that after some time, the market will normalize, allowing companies to return to the capital market.

The Chinese economy also faces challenges, and there is still uncertainty in the global economy. However, according to Loh, Asia will remain a bright spot internationally, and China, as the world's second-largest economy and biggest emerging capital market, is a major driving force for the global economy.

The SGX’s international investors are very confident about the economic prospects for China and Asia, Loh said, adding that its services cover a wide range of clients, focusing on medium and long-term investment performance. That provides a solid foundation to advance capital market cooperation between China and the member states of the Association of Southeast Asian Nations, he noted.

Editor: Martin Kadiev