[SINGAPORE] Over the next 12 to 18 months, at least five firms from mainland China and Hong Kong are reportedly considering the Singapore Exchange (SGX) for initial public offerings (IPOs), dual listings, or share placements, as Chinese companies seek to expand their presence in Southeast Asia amid ongoing global trade tensions, according to four sources. Among those eyeing the move are a Chinese energy company, a healthcare group, and a biotech firm based in Shanghai, though the companies have not been named as their plans remain in the early stages, Reuters reported.
These potential listings could provide a boost to SGX, which has been working to attract large listings and increase trading activity. In 2024, SGX saw only four IPOs, compared to 71 new listings on its rival, the Hong Kong Stock Exchange.
SGX has faced challenges in securing major listings in recent years due to factors like aggressive interest rate hikes by central banks and broader global economic uncertainties. However, the ongoing geopolitical climate, particularly the trade tensions between the U.S. and China, has sparked renewed interest in Singapore as a listing destination for Chinese companies.
In April 2024, Vasu Menon, OCBC’s Managing Director of Investment Strategy, noted that SGX must work harder and explore innovative ways to attract quality IPOs, as IPO activity had slowed in the past two years. Although signs of recovery were emerging, uncertainty continued to linger in the IPO market.
To enhance its appeal as a listing destination, the Singapore government has rolled out several initiatives. In February 2025, a 20% corporate tax rebate for primary listings and a 10% rebate for secondary listings were introduced, alongside a S$5 billion market development program. These measures have led to a significant rise in IPO inquiries, according to Ooi Chee Keong, a partner at Forvis Mazars.
Jason Saw, head of CGS International Securities’ investment banking group, pointed out that Chinese companies are increasingly turning to Singapore as they look to expand their presence in Southeast Asia amid the ongoing trade conflict with the U.S. Earlier, the U.S. had raised tariffs on Chinese goods to 145%, and China retaliated with tariffs of 125% on U.S. goods. While both sides agreed to a 90-day pause, uncertainty remains, particularly given the unpredictable policies from the Trump administration.
Despite the growing interest, industry experts believe Singapore is unlikely to close the gap with Hong Kong in terms of equity listings in the near future. Factors such as a more cautious investor base and stricter listing requirements in Singapore make it a less favorable option for some companies. However, the continued trade tensions and Singapore's strategic location as a gateway to Southeast Asia make it an attractive destination for Chinese firms.
Saw noted that since the latest U.S. tariff moves against China, listing inquiries on SGX have surged. Pol de Win, Senior Managing Director and Head of Global Sales and Origination at SGX, emphasized that the role of gateways connecting China to the rest of the world will become even more critical in the coming years. “Singapore is an important gateway, whether it’s trade or business activity from China to the outside world, and a listing in Singapore is an essential part of that,” he said, though he did not comment on the specific listing plans involving Chinese and Hong Kong firms.
Saw added that CGS International, a unit of China Galaxy Securities, is currently working with at least two Chinese companies that may list in Singapore as early as this year, though their names have not been disclosed. One source indicated that some of these firms could raise around US$100 million through primary listings in Singapore.
While Hong Kong remains the top choice for many Chinese companies seeking offshore listings, some are now turning their attention to SGX, as Beijing seeks to deepen ties with Southeast Asia, according to capital market advisers. To further strengthen its equity market, the Singapore government introduced a 20% corporate tax rebate for primary listings, a 10% rebate for secondary listings, and a S$5 billion market development program. These measures have led to a notable increase in IPO inquiries, according to Ooi Chee Keong. Additional support measures are expected in the second half of 2025.
Ringo Choi, EY’s Asia Pacific IPO Leader, noted that Singapore's political stability and neutral stance on global issues make it an attractive option for companies. However, few expect Singapore to catch up to Hong Kong in equity listings anytime soon, citing its more cautious investor base and stricter listing requirements.
A managing director at a Singapore-based multinational software company told Reuters that Singapore needs to make it easier for companies, especially tech firms, to list. He argued that since most startups in the region are based in Singapore, it should be the preferred location for their listings.
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