China firms can directly list in Singapore from tomorrow

China firms can directly list in Singapore from tomorrow
The logo of the Singapore Exchange (SGX) is pictured at its office. Photo: Reuters
Framework will strengthen bilateral ties and provide greater assurance to the marketplace: SGX
Published: 5:50 PM, November 25, 2013
Updated: 2:30 PM, November 26, 2013

SINGAPORE — Singapore Exchange (SGX) and the China Securities Regulatory Commission (CSRC) have established a framework that will allow Chinese companies to directly list in Singapore from tomorrow (Nov 26).

Under the new direct listing framework, which will take effect tomorrow, companies incorporated in China will be able to list on SGX directly, provided their applications have been approved by both CSRC and SGX.

There are no rules prohibiting Chinese companies from list here but the new framework will formalise and strengthen bilateral regulatory cooperation and provide greater assurance to the marketplace, SGX said.

“The framework will enable companies from China to more efficiently tap the capital markets in Singapore ... offering the latter more choices and access to the growing Chinese economy,” SGX’s chief executive Magnus Bocker added.

There are four companies incorporated in China — along with over 140 offshore Chinese companies — currently listed in Singapore.

“Companies in China I spoke to told me they could be interested in a framework that allow them to list in Singapore without going offshore,” SGX’s head of listings Lawrence Wong told reporters.

“With the framework, they are now given another choice to get listed here more easily — and we continue to see strong interest for that.”