SGX renews courtship of Chinese companies, with focus on strong listings

SINGAPORE – Investors could see more familiar Chinese names on the local bourse in 2026 as the Singapore Exchange (SGX) makes a renewed push to draw Chinese companies for listings.

Fresh from grant injections by the Government and recent regulatory nods from both sides, the exchange is gunning for tried-and-proven businesses like advanced manufacturing, as well as those in digital infrastructure, consumer technology, healthcare and sustainable energy.

This time, compared with the 2000s, targets will be on businesses deemed to have long wicks rather than stars that light up the scene, just to fizzle out shortly after.

The first pitch is to familiar brands here to put their primary, or first, listings here, said Ms Chia Caihan, SGX Group’s head of capital markets for Greater China.

Speaking to The Straits Times at SGX Centre on Dec 17, she said at the top of this list are Chinese businesses that have moved their headquarters here and are eyeing growth in this region.

With fund raising slowing in China, SGX’s second pitch is to companies already listed in China to come for a secondary listing.

It will help raise their brand profile among investors here if they are eyeing expansion in South-east Asia, she said.

A secondary listing also allows them to issue their Singapore employees shares, which cannot be done with their Chinese counters, known as A-shares – owing to foreign ownership restrictions and currency controls.

Singapore offers these companies access to US and European investors, as well as regional investors who increasingly recognise Chinese brands and are willing to invest in them, Ms Chia said.

“China’s governance disclosures are now almost at developed market standards. You look at the kind of disclosures that they require, it is almost compatible with developed jurisdictions.”

The criteria for prospects are a clear strategic mindset for listing, with local presence and shareholder communication, she said.

In the 2000s, a number of Chinese-listed companies – known as S-chips on SGX – were facing accusations over fraud, accounting irregularities and debt issues, and delistings and share suspensions followed.

Ms Chia, who started in SGX in 2004 and took on her current portfolio in 2024, said that this time, it will be different.

The companies that listed on the exchange then were narrow in their scope of businesses, she said.

Some of those companies did well when they were approved for listing, but did not have the scope to pivot when the economic cycle changed. “Some of them took the extreme route of doing illegal stuff, falsifying accounts and all that. That sent a very bad message to the market, and it affected the confidence. We don’t want that to happen again,” she said.

SGX’s push is bolstered by the

$5 billion Equity Market Development Programme

, launched by the Monetary Authority of Singapore in 2025.

The kitty channels funds via managers including BlackRock and Eastspring to provide cornerstone capital, or funds committed for a chunk of shares in new listings that helps shore up their credibility; market-making support; and research grants as part of its goal to revive tepid investor and listing activity on SGX in recent years.

Regulatory support also came in December following a meeting between Deputy Prime Minister Gan Kim Yong, who is also Minister for Trade and Industry, and Chinese Vice-Premier Ding Xuexiang, which resulted in bilateral support for Chinese companies to mount secondary listings on SGX.

The exchange listed 614 companies on its mainboard and Catalist as at Dec 18, including about 100 of Chinese origin.

Recent listings include shoe rubber adhesive maker Infinity Development on the Catalist and Yangzijiang Maritime Development, a spin-off of Yangzijiang Financial, which was itself carved out from Yangzijiang Shipbuilding, which listed in 2007.

The first time Yangzijiang Shipbuilding spun off its financial arm, the original company more than doubled its value from $6 billion, said Ms Chia, illustrating the potential of the market.

Against its competitor, the Hong Kong stock exchange, SGX touts Singapore’s edge in its Government’s support – even post-listing – with research and growth funding, Ms Chia said.

Low liquidity, a frequent complaint about SGX, does not worry Chinese investors, with early help from the exchange on netting secondary investors after their listing, and market-making research.

Companies valued under $5 billion would find the support especially helpful. “I think they are pretty comfortable with what we can offer because they don’t get this kind of support when they go to other markets. They are just too small,” she said.

The Republic also has a diverse investor base: Asean players, family offices, European pension and hedge funds, Middle Eastern funds, as well as regional vehicles of US-based funds, which are mostly avoiding Chinese investments given geopolitical tensions.

Asked about “Singapore-washing” concerns, where listings might superficially rebrand China-centric operations, Ms Chia said: “A listing does not make you a Singapore company overnight.

“You need to work together with our SMEs (small and medium-sized enterprises). You need to see how to make use of our talent and resources.”

Compared with the Chinese entrepreneurs who arrived two decades ago, and who sometimes imported entire supply chains without integration, today’s cohort is more aware of the need to reciprocate.

“They recognise the benefits that Singapore is giving them, and a lot of them are giving it back to Singapore. It is just that, given their status – they may still be Chinese citizens – they cannot do it that openly.

“But I would say that they have been doing more than what we expect because they really hope to blend into Singapore.”

For local investors, participating in these companies’ corporate meetings and asking questions will keep the companies on their toes and help them communicate more.

On why getting the listings matters, Ms Chia said: “Chinese companies are important because in the overall corporate world, they have become a very important piece.”

The move also helps Singapore retain and grow its wealth, she said. “That is why I would think that everybody has a role to play in it.”