Chinese companies eye Singapore listings to expand markets amid trade war: Sources

SINGAPORE – At least five companies from China or Hong Kong are planning initial public offerings (IPOs), dual listings or share placements in Singapore in the next 12 to 18 months, four sources said, as Chinese firms look to expand in South-east Asia amid global trade tensions.

The companies include an energy firm, a healthcare group and a Shanghai-based biotech group, said the sources, who declined to name the firms as the plans have not been finalised.

The listings would give a boost to Singapore Exchange (SGX), which, despite being a popular venue for yield plays such as real estate investment trusts, has been struggling to attract mega listings and bolster trading volumes.

SGX hosted just four IPOs in 2024, according to its website. That compares with 71 recorded by rival Hong Kong Exchanges and Clearing.

Chinese companies are looking to tap the Singapore bourse as they look to enter or expand business in South-east Asia amid a trade war with the US, Mr Jason Saw, investment banking group head at CGS International Securities, said.

President Donald Trump imposed tariffs of 145 per cent on imports of Chinese goods, and Beijing raised tariffs on US products to 125 per cent, before the two sides agreed to a 90-day pause recently. But uncertainty remains, given the time limit and the Trump administration’s unpredictability.

Inquiries about listings on SGX “shot through the roof” after Mr Trump ramped up his trade actions against China, Mr Saw added.

Said Mr Pol de Win, senior managing director and head of global sales and origination at SGX: “For the next years and decades, gateways from China to the world are going to be more important.

“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 important component of that.”

CGS International, a unit of state-owned brokerage China Galaxy Securities, is working with at least two China-based companies to list on the SGX as early as 2025, according to Mr Saw.

Some of the mainland Chinese and Hong Kong companies could raise around US$100 million (S$130 million) via primary listings in Singapore, said one of the sources.

SGX is usually not the first choice for Chinese firms eyeing an offshore market debut.

Most prefer Hong Kong due to Beijing’s support and a large pool of institutional and retail investors more familiar with Chinese brands.

Beijing’s efforts to boost ties with South-east Asia, amid escalating tension with Washington, have, however, encouraged some Chinese companies to increase their presence in the region, capital market advisers said.

The listing plans in Singapore come after the city-state in February announced measures to strengthen its equities market, which included a 20 per cent tax rebate for primary listings, and vowed to unveil a next set of measures in the second half of 2025.

The initiatives are set to boost interest in the local IPO market, said Mr Ringo Choi, EY’s Asia-Pacific IPO Leader, adding that Singapore’s “political stability and neutral stance” on geopolitical matters should appeal to companies.

Not many, however, see Singapore closing its gap with Hong Kong in equity listings in the near future, due to factors including the Republic’s relatively conservative investors and stricter listing requirements.

“You need to make it easier for companies, especially technology companies, to list,” said the managing director of a Singapore-based multinational software company. He declined to be named as he was not authorised to speak to the media.

“Most of the start-ups in the region are headquartered in Singapore, so this should be the place they list.” REUTERS