SINGAPORE (Sept 21): China continues to deepen its ties with Asean through closer capital market collaborations, industrial ecosystem and cross-border investment channels, including the launch of the first Belt and Road exchange-traded fund (ETF), said Wang Sheng, chairman of China Galaxy Securities Co Ltd (CGS).

"In collaboration with partners, CGS International will launch the first offshore market's Belt and Road bond ETF. The fund will channel offshore renminbi (RMB) into onshore Belt and Road-themed bonds, expanding investment avenues for offshore RMB and supporting high-quality Belt and Road cooperation.

"This marks a concrete achievement in China-Singapore financial connectivity, broadening asset-allocation choices for offshore investors," he said during the CGS China-Asean Business Leaders Summit 2026.

The event was held at Swissôtel The Stamford, Singapore. It was hosted by CGS International Securities, in partnership with the SGX Group and China Enterprises Association. UOB is the strategic bank partner.

CGS also launched the China-Asean private equity (PE) fund in April, called the Galaxy Orientis China-Asean Investment Programme (CAIP), which has received limited partner capital support from sovereign institutions. They include China Investment Corporation, Indonesia Investment Authority and the State Oil Fund of the Republic of Azerbaijan (SOFAZ).

CAIP's fund size is US$1 billion (RM4.08 billion) and the general partner or fund manager is CGS International. It will focus solely on diversified investments across Asean.

"For the region, CAIP will help build an ecosystem. It will sponsor the Asean private equity and venture capital, which will invest in the unicorns and start-ups, and we can then expect more Asean IPOs. This will eventually increase the attractiveness and resilience of the stock market," he said.

CGS also launched the Galaxy Bosera MSCI China-Asean Economic Linkage Select ETF in January, which was successfully listed on the Hong Kong Stock Exchange. It was the first ETF in Hong Kong to focus on equity assets from both China and Asean.

The product offers investors an innovative financial tool to gain "one-click" exposure to leading Asean-listed companies and high-quality Chinese enterprises expanding abroad.

Since its launch, the ETF has attracted active participation from major global institutions and is expected to be officially included in the ETF Southbound Connect scheme soon, he added.

Wang said 2026 marks the fifth anniversary of the establishment of the China-Asean Comprehensive Strategic Partnership, with both sides achieving good results in cooperation across various fields.

"China and Asean are already each other's largest trading partners, but the next opportunity lies beyond trade — in investment, innovation, industrial collaboration and capital market connectivity," he said during his welcome remarks.

His Excellency Cao Zhongming, ambassador extraordinary and plenipotentiary of the People's Republic of China to Singapore, was a guest of honour at the event.

During his address, Cao further elaborated on the close economic relationship between China and Asean. 

In terms of trade, China has been Asean's largest trading partner for 17 consecutive years, while Asean has been China's largest trading partner for six consecutive years. Bilateral trade exceeded seven trillion yuan (RM4.2 trillion) last year.

From January to July this year, total trade between China and Asean increased 24.7% year-on-year, accounting for 21.8% of China's total foreign trade over the same period, he said.

On investment, cumulative two-way investment between both sides had exceeded US$515 billion.

Meanwhile, industrial and supply chain cooperation between China and Asean includes projects such as the China-Malaysia and China-Indonesia "Two Countries, Twin Parks" initiatives and the China-Laos Cross-Border Economic Cooperation Zone, all of which are advancing steadily, he said.

In terms of regional economic integration, more than 90% of goods traded within the region have enjoyed zero tariffs since the Regional Comprehensive Economic Partnership (RCEP), the world's largest free trade agreement connecting 15 Asia-Pacific economies, came into effect.

The China-Asean Free Trade Area 3.0 Upgrade Protocol was also formally signed in October last year, promoting the accelerated expansion of cooperation from traditional trade and investment into areas such as the digital economy, green economy, supply chain connectivity and alignment of standards and regulations.

"According to projections by the Asean Secretariat, Asean's regional economy is expected to grow by 4.5% in 2026. China is willing to work with Asean to accelerate the building of a closer China-Asean community with a shared future and make positive contributions to regional stability, prosperity and development," said Cao.