Goh Chok Tong, Singapore's Senior Minister said during his trip to China that both the countries are looking forward for greater financial cooperation.

He also said that Singapore is also looking to find out the ways to provide a clearing bank status for one of the Chinese banks.

He said that both countries should go for financial cooperation and China has to eventually internationalize the Renminbi.

Both the countries are deciding to open their representative offices in each other countries. The Monetary Authority of Singapore (MAS) will set up its office in Beijing and similarly, China will set up an office in Singapore.

MAS will be given the status of Qualified Foreign Institutional Investor (QFII) by China which denotes that MAS has the authority to invest in China and in the products in China.

Goh Chok Tong further said that for the clearing of Renminbi trade, the People's Bank of China (PBOC) will designate a Chinese bank in Singapore.

Till now, Singapore has become the hub of several Chinese banks, among which the Bank of China and the Industrial and Commercial Bank of China have the largest number of branches.

Singapore made it clear that clearing Renminbi trade will just help facilitate trade between China and southeast Asian countries and does not aim to rival Hong Kong.