The Singapore Exchange and Hong Kong Exchanges and Clearing on Wednesday signed a deal to co-operate on a number of areas that include promoting the internationalization of the Chinese yuan.
The move reflects the growing importance of the Chinese currency, also known as the renminbi, in international trade and finance.
(Read more: Yuan now second most used currency in trade finance)
In a statement, the two exchanges said the co-operation would also focus on collaborating on technology development and regulatory issues.
Charles Li, CEO of the Hong Kong Exchanges and Clearing (HKEx), and Singapore Exchange CEO Magnus Böcker signed a memorandum of understanding (MOU) on the collaboration in Singapore earlier on Wednesday, according to the statement.
"This is an MOU focusing on product development, technology collaboration and regulatory collaboration. It makes a lot of sense for us to do something together as the two leading Asian independent exchanges with an internationalized market," Li told CNBC.