At least five Chinese companies are preparing to list on the Singapore Exchange (SGX) over the next 12 to 18 months, signaling a strategic shift amid ongoing trade disputes with the United States, sources revealed.
Multiple Chinese Listings Set for SGX
Sources familiar with the matter indicated that companies from mainland China and Hong Kong—spanning the energy, healthcare, and biotech sectors—are eyeing initial public offerings, dual listings, or share placements in Singapore. These plans, while not finalized, are expected to provide a boost to SGX, which recorded only four IPOs in 2024, compared to 71 at the Hong Kong Exchanges and Clearing Ltd.
CGS International Securities is assisting at least two China-based firms in preparing listings this year, according to its investment banking head Jason Saw. He noted that inquiries about SGX surged after the United States increased tariffs on Chinese imports to 145%, with China retaliating by raising its tariffs to 125% before both sides agreed to a 90-day pause.
Singapore Exchange’s Strategic Role Grows
Amid heightened global trade uncertainties, Singapore is increasingly viewed as a critical gateway for Chinese firms expanding into Southeast Asia. SGX executive Pol de Win emphasized the city-state’s importance in facilitating cross-border business activities.
Beijing’s push to deepen ties with Southeast Asia, coupled with Singapore’s recent equity market incentives—including a 20% tax rebate for primary listings—has further enhanced the city’s appeal. However, experts caution that conservative investors and strict listing criteria may continue to limit Singapore’s ability to rival Hong Kong’s equity markets in the near term.
Regional Shifts and Future Outlook
Some Chinese firms could raise up to $100 million through SGX listings. While Hong Kong remains the top offshore market for many Chinese companies due to its proximity and investor base, Singapore’s political neutrality and financial reforms are creating new opportunities. Capital market advisors suggest that a continued easing of listing procedures could help SGX attract more technology firms headquartered in the region.
With trade tensions unlikely to ease fully, will Singapore’s appeal as a financial hub grow stronger for Chinese firms seeking regional expansion?
