Amid growing trade frictions with the United States and heightened geopolitical uncertainty, a wave of Chinese and Hong Kong–based companies is turning to Singapore’s stock exchange as a strategic launchpad for regional growth. At least five mainland and Hong Kong firms—spanning energy, healthcare, and biotechnology sectors—are actively preparing initial public offerings (IPOs), dual listings, or secondary share placements on the Singapore Exchange (SGX) over the next 12 to 18 months. Executives behind these moves say that listing in Singapore not only provides access to a broader base of Southeast Asian investors but also helps hedge against tariff risks and market volatility tied to the ongoing U.S.‑China trade war.

Shift in Listing Strategy

Historically, Hong Kong has been the go‑to offshore venue for Chinese companies seeking international capital. A combination of Beijing’s regulatory support, a familiar investor base, and deep trading liquidity made it a preferred choice. However, as Washington and Beijing have escalated reciprocal tariffs—at one point taxing imports of each other’s goods at up to 145 percent—uncertainty has driven Chinese issuers to explore alternatives. Singapore, with its political stability, robust legal framework, and proximity to fast‑growing Southeast Asian economies, has emerged as an appealing option.

“We saw a spike in listing enquiries the moment new tariffs were announced,” says Jason Saw, head of investment banking for CGS International Securities. “For energy, healthcare, and biotech firms especially, having a presence in Singapore signals that they are serious about tapping regional markets beyond Greater China.” Saw confirms that CGSI is advising at least two Chinese companies on SGX listings as early as the second half of 2025.

Among the prospective issuers are a mid‑sized Chinese energy company with ambitions to supply natural gas to liquefied natural gas (LNG) terminals in Indonesia and Vietnam; a Beijing‑based biotech group advancing novel gene‑therapy candidates and searching for R\&D partners in Singapore’s burgeoning biomedical research clusters; and a Hong Kong–listed healthcare conglomerate seeking to raise fresh capital for hospital expansion in Malaysia and Thailand. While none have finalized their listing structures, sources familiar with the transactions say combined primary proceeds could exceed US $500 million.

Why Singapore?

Analysts point out several factors that distinguish Singapore from other bourses. First, SGX’s improved incentives—introduced in early 2025—include a 20 percent tax rebate on qualifying primary listings and a 10 percent rebate for secondary share offerings. Coupled with a S$5 billion (US $3.85 billion) programme to invest in domestic equities, these measures aim to rejuvenate a market that had only 613 listed companies at the end of 2024—its lowest count in two decades.

Second, Singapore has unveiled proposals to relax listing requirements for high‑growth companies. In mid‑May, the Monetary Authority of Singapore (MAS) put forward draft rules to allow technology and biotech firms to forecast profits without needing a third‑party attestation, and to engage more readily with retail investors during the pre‑IPO roadshow. Moreover, MAS is considering limiting the amount of disclosure required about shareholdings in competing businesses, a move that would benefit corporate groups with complex ownership structures. Taken together, these reforms signal Singapore’s willingness to compete for listings traditionally routed to Hong Kong or New York.

Third, Singapore’s strategic location makes it a natural “gateway to Southeast Asia.” Pol de Win, SGX’s head of global sales and origination, emphasizes that the city‑state sits at the nexus of major shipping lanes and digital corridors. “For Chinese companies looking to penetrate markets like Indonesia, Malaysia, and Thailand, a Singapore listing not only unlocks new pools of capital but also establishes credibility with local regulators and corporate partners,” he says. The ability to trade on SGX also grants access to Singapore Exchange’s connectivity to the ASEAN Trading Link—an alliance with Kuala Lumpur, Jakarta, and the Philippines exchanges—that broadens share tradability across the region.

Sector‑Specific Motivations

Within the energy sector, Chinese firms are racing to diversify away from North American and European customers, where tariffs or import restrictions could impede growth. A mid‑tier LNG marketer based in Shenzhen, for example, has signed binding memorandums to supply gas to a joint venture in southern Thailand. By listing in Singapore, executives hope to showcase project economics to regional infrastructure investors and secure long‑term offtake agreements. Similarly, a state‑backed solar‑energy equipment manufacturer has considered a Singapore IPO to finance its planned rollout of solar farms in Vietnam and the Philippines.

Healthcare and biotechnology companies face parallel incentives. A Beijing‑based biotech group developing advanced cancer therapeutics sees Singapore as a nexus for clinical‑trial networks and venture capital funds. The company plans to raise roughly US $150 million to fund Phase II trials and upgrade its research facilities at Biopolis, Singapore’s life‑sciences hub. For its part, a Hong Kong–listed hospital operator with three specialty clinics in Guangzhou and plans to open two new hospitals in Malaysia views SGX as a way to showcase its track record to Asian bondholders and institutional investors. The firm has already engaged BDO Capital in Singapore to structure a dual listing that would retain its Hong Kong listing while adding Singapore shareholders.

Capital‑Market Advantages and Challenges

Despite the apparent appeal, listing in Singapore is not without challenges. SGX trades at a fraction of the daily turnover seen in Hong Kong—often under S$500 million (US $370 million) per day, compared to Hong Kong’s average of over US $3 billion. For many Chinese firms eyeing sizable capital raises, this disparity in liquidity raises concerns. Moreover, Singapore’s investor base tends to be more conservative, with a higher proportion allocated to real estate investment trusts (REITs) and yield‑generating instruments. High‑growth tech names rarely find enthusiastic buyers in SGX without considerable pre‑IPO education.

“You need a critical mass of institutions that understand your story,” says a managing director at a Singapore‑based fund. “Most domestic investors prefer telecom or financials—they’re less comfortable with a biotech firm from Beijing or a petrochemicals group targeting Indonesia.” This sentiment echoes SGX’s historical struggle to attract mega listings. In 2024, the exchange hosted only four IPOs, a stark contrast to Hong Kong’s 71 new listings.

To address these concerns, SGX and MAS have launched roadshows across Greater China, bringing potential issuers face‑to‑face with Singaporean asset managers, family offices, and sovereign wealth funds. They have also partnered with the Singapore Economic Development Board (EDB) to highlight regional growth narratives—for instance, emphasizing Singapore as a logistics and regulatory hub for ASEAN’s 700 million consumers. In parallel, SGX’s cross‑listings allow Chinese companies to dual‑list in Hong Kong or Shanghai while capturing retail and institutional flows in Southeast Asia.

Singapore’s Reforms and Future Outlook

The drive to attract Chinese issuers aligns with a broader set of reforms aimed at reviving SGX’s equities segment. In February 2025, Singapore introduced a S$5 billion investment programme to back domestic counter‑cyclical buying of equities, coupled with the 20 percent tax rebate. Over the next 18 months, MAS and SGX have pledged to roll out additional reforms—ranging from allowing dual‑class share structures to enabling subscription for new listings via digital platforms. These enhancements are targeted at tech‑driven unicorns and high‑growth healthcare ventures, sectors where Hong Kong and New York have traditionally had the upper hand.

Although experts caution that Singapore will not eclipse Hong Kong’s status as the region’s premier capital market—at least in the near term—Chinese companies see tangible value in embedding their presence within Southeast Asia’s fastest‑growing economies. One Shanghai‑based biotech group, for instance, consulted with regional life‑sciences accelerators in Biopolis and JTC LaunchPad in Jurong to explore joint R\&D collaboration, a step that would not have been as seamless without a Singapore capital‑market footprint.

Regional Expansion and Corporate Strategy

Beyond capital‑raising motives, Chinese firms view a Singapore listing as a strategic tool to forge alliances with regional partners. Consider a Hangzhou–headquartered medical‑device manufacturer specializing in minimally invasive surgical tools. By listing in Singapore, the company has already gained better leverage to negotiate distribution contracts with large hospital chains in Thailand and the Philippines. Its board has proposed a quota for placing up to 10 percent of shares directly with selected Southeast Asian institutional investors, ensuring a stable regional base. Similar dynamics are playing out in the consumer goods sector: a Guangzhou skincare producer plans to use SGX proceeds to accelerate rollouts in Malaysia and Indonesia, where rising middle‑class demand for “Made in China” beauty brands is fueling sales growth.

Trade‑tech startups are also eyeing SGX as a launching pad. A Shanghai‑based cross‑border logistics platform, which aggregates capacity across shipping lines and trucking companies, is considering a convertible bond issuance in Singapore to subsidize its expansion into Vietnam and Cambodia. The firm’s chief executive believes that having a Singapore listing would facilitate partnerships with regional port authorities and digital trade ecosystems, particularly under the ASEAN Digital Connectivity Framework.

While Chinese issuers are lining up to tap SGX, investor appetite remains uneven. Singapore funds have thus far committed around US $200 million to anchor the largest of the proposed IPOs, a figure many regard as modest. Letitia Goh, head of ASEAN equity research at a Singapore‑based bank, notes that Chinese companies aiming to list must devote significant effort to investor education. “You need to explain not just your financials but also how your business model integrates with Southeast Asia,” she says. “Chinese dependence on domestic supply chains can be a red flag—every investor wants to know how you’ll navigate regulatory, language, and cultural differences.”

Nevertheless, early indicators suggest that a handful of Chinese names could make impactful debuts. For instance, a biotech group pre‑marketing its prospectus in Singapore already secured cornerstone commitments from Temasek‑linked life‑sciences funds and industry‑specific sovereign investors. Another energy firm attracted interest from Singapore’s Temasek Ventures and GIC’s infrastructure arm as potential strategic partners, offering more than pure capital: regionwide market access.

Not all prospects are assured, however. A mid‑sized healthcare operator paused its listing plans in late April after preliminary discussions revealed that its anticipated valuation of US $1 billion was likely to be halved by Singaporean investors more conservative than their Hong Kong counterparts. The company’s board is now reevaluating whether a straight Hong Kong follow‑on share sale might prove more prudent.

Impact on SGX and Broader Markets

Should multiple Chinese issuers successfully list, SGX stands to benefit beyond just headline deal volumes. By broadening its universe of investable names, the exchange could entice foreign asset managers currently underweight in Asia’s second‑largest economy. Moreover, as capital flows shift slightly away from Hong Kong, Singapore may capture a share of trading volumes in specific sectors, especially biotech and cleantech, where local institutional investors have shown a willingness to back growth stories.

“SGX needs catalysts, and these Chinese listings could provide them,” says Pol de Win. “They will invigorate research coverage, bring new trading strategies into play, and attract cross‑border flows through ASEAN brokers. Over time, that can build sustainable liquidity.” Indeed, brokers in Kuala Lumpur, Jakarta, and Manila are already connecting retail clients to SGX platforms, anticipating cross‑border demand for Chinese growth names.

Meanwhile, Hong Kong is watching closely. Competition from Singapore has prompted the Hong Kong Exchanges and Clearing Ltd. (HKEX) to introduce its own incentives—such as lowering minimum float requirements and fast‑track approval processes for pre‑revenue biotech firms. Still, given Hong Kong’s larger pool of retail and institutional investors and deep technology and biotech expertise, many Chinese issuers will likely continue to view HKEX as their primary listing venue. Nonetheless, having a successful secondary listing in Singapore could serve as a hedge—a means of capital diversification should U.S.‑China tensions flare again.

Over the next 12 to 18 months, SGX aims to host 10 to 15 new Chinese‑initiated IPOs or share placements, according to a senior SGX official. If achieved, that would nearly triple SGX’s 2024 initial public offering count and send a signal to other Chinese issuers—particularly smaller, high‑growth businesses—that Singapore is no longer a “last resort” but a viable complement to Hong Kong or U.S. markets.

For the Chinese companies themselves, the calculus is clear: by listing in Singapore, they are buying optionality—access to a stable regional capital market, proximity to Southeast Asian customers, and a hedge against unpredictable trade policies. Whether this shift becomes a long‑term trend or a temporary blip driven by tariffs remains uncertain. What is certain, however, is that Singapore’s bourse is back on the radar of Chinese executives plotting overseas expansion—and that could reshape capital flows and listing dynamics in Asia for years to come.

(Adapted from Reuters.com)

Categories: Economy & Finance, Entrepreneurship, Geopolitics, Regulations & Legal, Strategy