Singapore is set to become a hotspot for Chinese companies looking to expand their presence in Southeast Asia amidst global trade tensions. According to sources familiar with the matter, at least five companies from mainland China or Hong Kong are considering IPOs, dual listings, or share placements on the Singapore Exchange (SGX) within the next 12 to 18 months.
The companies in question include a Chinese energy company, a Chinese healthcare group, and a Shanghai-based biotech group. While the plans are not yet finalized, the potential listings would provide a much-needed boost to SGX, which has been struggling to attract large listings and increase trading volumes in recent years.
Despite hosting only four initial public offerings in 2024, SGX is poised to benefit from the interest of Chinese companies seeking to enter or expand their business in Southeast Asia amid the ongoing trade war between the United States and China. The tariffs imposed by President Donald Trump on Chinese goods have prompted Chinese firms to explore listing opportunities in Singapore as a gateway to the global market.
Jason Saw, head of the investment banking group at CGS International Securities, noted that enquiries about listings on SGX surged following Trump’s trade actions against China. With uncertainty looming over the trade war, Chinese companies are increasingly looking towards Singapore as a strategic listing destination.
While Hong Kong remains a popular choice for Chinese companies due to Beijing’s support and a large pool of investors familiar with Chinese brands, the strengthening ties between Beijing and Southeast Asia have encouraged some firms to consider Singapore as an alternative listing venue. In February, Singapore announced measures to bolster its equities market, including a 20% tax rebate for primary listings, with further initiatives expected to be unveiled later this year.
Ringo Choi, EY’s Asia Pacific IPO Leader, believes that Singapore’s political stability and neutral stance on geopolitical matters will appeal to companies seeking to list on the exchange. However, some industry experts are skeptical about Singapore closing the gap with Hong Kong in terms of equity listings, citing factors such as conservative investors and stricter listing requirements.
To attract more companies, especially technology firms, the managing director of a Singapore-based multinational software company emphasized the need to streamline the listing process. As startups continue to thrive in the region, Singapore has the potential to become a preferred listing destination for emerging companies.
As Chinese companies eye Singapore as a gateway to Southeast Asia and beyond, the city-state’s equities market is poised for growth and increased activity in the coming months. With ongoing developments in the global trade landscape, Singapore’s position as a financial hub for Chinese firms is expected to strengthen, offering new opportunities for collaboration and investment in the region.
