In the coming weeks, Singapore Exchange Ltd. there will be more listings of Chinese issuers that are already trading in US depositary receipts, even as it struggles with deferred deals amid a global drop in value.
Following the technical listing of Nio Inc. in May, traders and investors believe that other companies will make a similar move.
Chinese firms are being attracted because they face greater regulatory and delisting risks in the US, forcing them to seek other venues, including Switzerland. Listing plans around the world have faltered this year as traders and investors have been threatened by high inflation and rising interest rates. Companies that have postponed unit offerings in Singapore include large companies such as Thai Beverage Plc and Olam Group Ltd.
The marketplace last month signed an agreement with the New York Stock Exchange that improves cooperation on dual listings of companies. This allows already listed companies to consider another foreign exchange and the MoU helps in terms of joint marketing.
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At least 11 Chinese-based companies are listed in both the US and Singapore, according to analyst data. Singapore hasn’t had an IPO for three months, and this year’s revenue was about $385 million, up 59% from the same period in 2021.
Paul de Veen, SGX’s head of global sales and customer acquisition, said earlier that the exchange is in talks with companies in China and Southeast Asia in areas such as fintech and consumer technology that it would like to attract.
As for potential homecoming listings from Grab Holdings Ltd. and Sea Ltd., Lo said there are other US-registered companies they plan to open negotiations with.
Potential special purpose acquisition companies are waiting for the mergers led by the first wave of blank companies in Singapore to see how the process develops.
The exchange plans to invest in, acquire, or partner with firms that provide data, indices, or technology for asset classes including currencies and commodities, as well as capital markets in general.
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