Singapore Exchange (SGX) and China's Zhengzhou Commodity Exchange (ZCE) on Friday signed a Memorandum of Understanding (MOU) to develop and expand the commodities markets in both countries jointly.

The MOU will explore areas of cooperation including the development of new commodity derivative products, joint commodity- related events, and information sharing, training, as well as member and investor education programs, said SGX in a news release.

SGX CEO Magnus Bocker and ZCE Chairman Zhang Fan signed the agreement, which aims to strengthen mutual understanding and promote bilateral partnership.

Zhang said that signing the MOU and establishing a cooperative relationship with SGX enable ZCE to strengthen its cooperation with regional markets. Zhang also noted that ZCE and SGX have complementary product categories.

"By working more closely together, both exchanges can leverage each other's strengths to expand, promote and facilitate the development of both markets," said Zhang.

Bocker also said that SGX is pleased to build partnership with ZCE. "By aligning our strengths, international customers can tap on the unique advantages in China and the surrounding growth economies through Singapore and SGX," said Bocker, adding "this MOU further supports SGX's commitment to the commodity industry in Asia."