SINGAPORE: At least five companies based in mainland China or Hong Kong are considering initial public offerings, dual listings, or share placements on the Singapore Exchange (SGX) over the next 12 to 18 months, according to four individuals with direct knowledge of the matter. The move reflects a growing interest among Chinese firms in expanding their presence in Southeast Asia, as escalating geopolitical tensions with the United States drive a shift in strategic priorities.
Among the potential listings are a Chinese energy firm, a healthcare group, and a Shanghai-based biotechnology company. While sources declined to disclose specific names as discussions remain preliminary, the developments mark a notable shift towards Singapore as a capital-raising hub.
The planned activity would serve as a welcome catalyst for SGX, which has faced challenges in attracting large-scale listings and boosting trading volumes in recent years. In 2024, SGX hosted only four IPOs, significantly trailing Hong Kong Exchanges and Clearing Ltd, which recorded 71 new listings over the same period.
According to Jason Saw, head of investment banking at CGS International Securities, Chinese interest in SGX surged following recent trade actions by the United States. “Enquiries about listings on SGX shot through the roof after Trump ramped up his trade actions against China,” he said.
Former US President Donald Trump imposed tariffs of 145% on Chinese imports, prompting retaliatory duties from China of up to 125% on US goods. Although both sides recently agreed to a temporary 90-day pause, long-term uncertainty continues to influence strategic corporate decisions.
CGS International, a subsidiary of China Galaxy Securities, is reportedly working with at least two China-based companies to debut on SGX within the year. Some of these firms could raise approximately US$100 million (RM429.6 million) through primary listings, one source noted.
While SGX has historically not been the primary destination for Chinese offshore listings—Hong Kong remaining the preferred venue due to regulatory alignment and investor familiarity—recent geopolitical shifts and Beijing’s push to deepen ties with ASEAN markets are reshaping this outlook.
“Singapore is an important gateway, whether it’s trade or business activity from China to the outside world,” said Pol de Win, Senior Managing Director and Head of Global Sales and Origination at SGX. “A listing in Singapore is an important component of that.”
The Singaporean government has introduced measures to bolster its equities market, including a 20% corporate tax rebate for primary listings announced in February. Further initiatives are expected in the second half of 2025. According to Ringo Choi, Asia-Pacific IPO Leader at EY, these steps, combined with Singapore’s political stability and neutrality in global affairs, make the city-state an attractive proposition for companies seeking diversification outside of China.
Despite growing interest, industry insiders caution that SGX is unlikely to rival Hong Kong in the near term, citing comparatively conservative investor behaviour and stricter listing criteria. “You need to make it easier for companies, especially technology companies, to list,” said the managing director of a Singapore-based multinational software firm, who spoke on condition of anonymity.
Nonetheless, with many Southeast Asian startups headquartered in Singapore, the groundwork may already be in place for the city to evolve into a more prominent capital market hub for Chinese firms navigating an increasingly complex global trade environment.
-Reuters
