THE Singapore Exchange (SGX) denied reports on Wednesday evening that a possible stock trading link with China is in the works along the lines of the Shanghai-Hong Kong Stock Connect.
SGX said it is "not currently in the process of establishing such a link, but remains open to future collaborations which benefit our partners and shareholders".
In response to a query from the Monetary Authority of Singapore (MAS), SGX refuted the speculation mentioned in several media reports after some brokerage houses issued reports about such a link.
In a recent note, Macquarie had said that a Singapore-China stock connect "could be a possibility in the next 12 to 18 months" and could help boost net profit at SGX by as much as 8 per cent from its base case scenario".
Another brokerage house report mentioned Chinese media reports speculating that the Chinese government may consider such a link with Singapore after the launch of the Shenzhen-Hong Kong Stock Connect later this year.
SGX shares, which hit a five-year high of $8.63 on volume of 10.9 million shares on Tuesday, slipped 0.5 per cent or four cents to $8.59 on Wednesday, with 8.04 million shares traded.
Since closing at $7.99 last Thursday, SGX shares have jumped 7.5 per cent amid elevated levels of trading. The stock has gained nearly 11 per cent so far this year, more than double the 5 per cent increase in Straits Times Index at a time when SGX has been struggling with thin securities trading volumes.