Chinese Companies Seek Empowering Market Expansion Through Singapore Listings Amid Trade War Turmoil
In a notable shift, at least five companies from mainland China and Hong Kong are eyeing initial public offerings (IPOs), dual listings, or share placements in Singapore over the next 12 to 18 months. Sources with direct knowledge of the plans—who requested anonymity—indicate these firms include a Chinese energy company, a healthcare group, and a Shanghai-based biotech firm. This move comes as Chinese businesses increasingly seek opportunities in Southeast Asia amid strained global trade relations.
This surge in interest is expected to provide a much-needed boost to Singapore Exchange (SGX). Despite being a favored choice for yield-driven investments like real estate investment trusts (REITs), SGX has struggled to lure large-scale listings, especially when compared to its regional competitor, Hong Kong Exchanges and Clearing Ltd., which recorded a staggering 71 new listings in 2024, while SGX logged just four.
The trade tensions, particularly between the U.S. and China, are influencing this shift. Following the imposition of a 145% tariff on imports of Chinese goods by the Trump administration, China retaliated with a 125% tariff on U.S. products. While both nations recently agreed to a 90-day pause on trade escalations, uncertainty lingers, prompting Chinese firms to look for alternative pathways to expanding their businesses.
Jason Saw, head of the investment banking group at CGS International Securities, noted a dramatic increase in inquiries about SGX listings coinciding with heightened U.S.-China trade hostilities. “For years to come, gateways from China to the world will be increasingly vital,” he said, emphasizing Singapore’s role as a critical conduit for trade and investments.
In February, Singapore’s government introduced strategic measures designed to enhance its equity market, including a generous 20% tax rebate for primary listings. Ringo Choi, EY’s Asia Pacific IPO Leader, believes these initiatives will tempo the local IPO market, underscoring Singapore’s appeal due to its “political stability and neutral stance” in global affairs.
While these efforts have generated optimism, experts suggest that closing the gap with Hong Kong in terms of equity listings is a formidable challenge. Singapore’s conservative investor base and stringent listing criteria may deter some companies. A managing director of a Singapore-based software multinational, speaking on condition of anonymity, highlighted the need for easier access to the market for technology firms, which are often headquartered in the city-state.
Some Chinese and Hong Kong businesses could potentially raise around $100 million through primary listings in Singapore, yet many still prefer Hong Kong for their market debut, owing to Beijing’s backing and a robust network of institutional investors familiar with Chinese brands.
As Southeast Asia’s market landscape continues to evolve, a growing number of Chinese companies are shifting their focus to the region in light of the strengthening ties with Southeast Asian nations. The prospective influx of listings in Singapore reflects a broader trend of adaptation that may redefine regional financial landscapes in the coming years.
Original Source: https://www.cnbc.com/2025/05/18/some-chinese-companies-eye-singapore-listings-to-expand-markets-amid-trade-war.html
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Publish Date: 2025-05-18 13:00:00
