SGX expects more Chinese firms to list as US regulations tighten
The Singapore Exchange (SGX) anticipates more Chinese companies with US listings to come to Singapore in the coming months, despite a challenging global market environment. Following Nio’s technical listing in May, SGX’s CEO Loh Boon Chye revealed that other firms are expected to follow suit. If market conditions improve, fundraising could take place, but if conditions remain unfavourable, firms may opt for technical secondary listings instead.
This move comes as Chinese companies face increased regulatory scrutiny and potential delistings in the US, prompting many to seek alternative markets like Switzerland. Global listing plans have slowed this year due to high inflation and rising interest rates. Major companies such as Thai Beverage and Olam Group have delayed their listings in Singapore.
In a bid to attract more listings, SGX recently signed an agreement with the New York Stock Exchange to strengthen collaboration on dual listings and joint marketing efforts. Loh mentioned that the memorandum of understanding would encourage companies listed in the US to consider other overseas exchanges.
Currently, 11 China-based firms are listed on both the US and SGX, according to Bloomberg data. Singapore has not seen an IPO for three months, but the total raised so far in 2023, approximately US$385 million, is up 59% compared to the same period in 2021.
SGX’s head of global sales, Pol de Win, stated that the exchange is actively engaging with Chinese and Southeast Asian companies, particularly those in fintech and consumer technology, to attract them to list. On the topic of potential listings from companies like Grab and Sea, Loh confirmed that SGX is in talks with other US-listed companies.
Further discussions with Loh revealed that special purpose acquisition companies (SPACs) are closely watching the progress of mergers involving the first wave of blank-cheque companies in Singapore. Additionally, SGX is looking to invest, acquire, or partner with firms specialising in data, indices, and technologies related to asset classes such as currencies, commodities, and capital markets.
Finally, Climate Impact X, a carbon-credit trading market backed by SGX, is expected to launch a spot market by 2023.
