As The Straits Times reports, Singapore and China will launch direct trading between the Singapore dollar and the Chinese renminbi from Tuesday, in a move set to lower currency conversion costs and boost their already strong trading links.
"The Chinese want to look at partners that have a well regulated market and a good reputation as they internationalise the yuan. They look at Singapore and find us a useful partner to have," said Mr Teo at the sidelines of the Joint Council for Bilateral Cooperation (JCBC) - the highest-level bilateral negotiation mechanism.
Mr Zhang also announced that Singapore has been chosen as one of the investment destinations under the RMB Qualified Domestic Institutional Investor (RQDII) scheme, which will give Chinese institutional investors access to Singapore's capital markets.
China is Singapore's largest trading partner. Singapore was also the largest foreign investor in the world's No. 2 economy last year.
As part of efforts to internationalise the renminbi, China has launched direct trading with several currencies: the euro, the British pound, the Japanese yen and the New Zealand dollar.