Shanghai and Singapore financial institutions can work together to encourage Chinese corporates to leverage the scheme and access direct financing for their BRI projects overseas. b. Second, the BRI also presents a good opportunity for promoting sustainable financing, given the potential negative environmental impact from unsustainable forms of infrastructure 2/3  BIS central bankers' speeches  development. China leapfrogged into top position as the largest issuer of green bonds globally in 20161. There is much that Singapore can learn from. To encourage green bond issuances, MAS introduced the Green Bond Grant Scheme in March of this year to offset the costs of external reviews required for issuing sustainability-oriented bonds. Together, Shanghai and Singapore can grow the global green bond market and play important roles in furthering sustainable financing. c . Third, there is also room for Shanghai and Singapore insurers to provide better insurance coverage of BRI projects. BRI projects can leverage insurance pools or consortiums to manage risk exposures of large-scale infrastructure projects. Shanghai and Singapore insurers can participate in regional insurance pools to provide more comprehensive coverage for a wider range of risks, while introducing new projects that would enhance the profitability of these insurance pools. 5 In the FinTech space, Shanghai and Singapore can collaborate in creating a conducive eco-system for FinTech companies and start-ups. The need for collaboration 1  arises from the fact that technology companies are dynamic and continually looking to internationalize their businesses.

8 To support such efforts in Shanghai, Singapore financial institutions can partner the Shanghai authorities and financial institutions to spearhead policy innovation supporting the liberalization agenda. For example, DBS participated in underwriting the pilot issuance of free trade zone (FTZ) bonds by the Shanghai Municipal Government last year, demonstrating how the complementarity of overseas networks that foreign banks provide can contribute to the internationalization of China’s capital markets. 9 Second, the Belt and Road Initiative (BRI) will remain a priority trans-national initiative in China. During the National People’s Congress meetings last month, President Xi suggested that the Shanghai FTZ could be a bridgehead for the BRI, to help domestic companies channel investment overseas and set up a legal framework in line with international trade and investment rules. As a hub for trade and investment flows in Southeast Asia, Singapore would be a natural partner to Shanghai in realizing this vision to promote trade and investment flows between China and the ASEAN region. 1 0 Third, technology will continue to present benefits and opportunities to the financial sector. As leading FinTech centres, there is great scope for Shanghai and Singapore to harness technology together in a purposeful way, while ensuring appropriate and responsive regulatory frameworks to safeguard against possible new risks. Anchoring Stability, Leveraging Opportunities 11 Shanghai and Singapore can look forward to further strengthening collaboration and deepening mutual understanding in these as well as other areas.