Shanghai International Energy Exchange (INE) and DBS Bank signed an agreement of strategic cooperation in Shanghai to boost the internationalization of China’s energy futures exchange market. DBS is the first foreign bank in China to forge a strategic alliance with INE. Chu Juehai, president and CEO, Shanghai International Energy Exchange; Chng Sok Hui, chief financial officer, DBS Bank and Neil Ge, CEO, DBS Bank (China) participated in the signing ceremony.

 

INE and DBS will leverage their respective strengths and business resources to collaborate in areas such as settlement, risk management, international client servicing and product innovation. The strategic partnership symbolizes a firm step forward in INE’s development of an efficient, equitable and safe international energy futures exchange market to boost the internationalization of China’s futures exchange market.

 

At the signing ceremony, Juehai said, "With the shift in the demand-supply equilibrium of the global energy market, Asia-Pacific has become an important spot energy market, prompting the need to develop an influential energy futures exchange and pricing market. INE strives to develop an efficient, equitable and safe international energy derivatives trading platform to form an Asia-Pacific pricing centre which is linked to the European and American markets to facilitate 24 hours trading for risk management. This will ensure the healthy development of Asia Pacific economies and to facilitate efficient and timely pricing risk management by global investors. INE and DBS can collaborate on multiple aspects and levels to boost the opening up of China's futures exchange market and accelerate its internationalization."

 

Ge added: “Through this partnership, DBS endeavours to leverage its extensive international market experience and resources to support INE to develop a more robust international energy futures exchange market in China. To meet the specialized needs of commodities clients across the region, DBS has professional teams in Singapore, Hong Kong, Shanghai and London offering a full range of commodities financing, including customized trade financing, cash and risk management solutions and we strive to provide comprehensive financial services to INE’s clients and corporates.”

 

The INE, established in November last year, will handle energy futures trading within the pilot Shanghai Free Trade Zone (FTZ). It will have the largest market capitalization within the FTZ. It is the fifth national futures exchange approved by the China Securities Regulatory Commission.