SGX’s Nasdaq tie-up is a bid to stem exchange’s outward flows
Agreement on dual listings positions Singapore to take advantage of US-China tensions.
A new cooperation agreement between Singapore Exchange Regulation, the regulatory arm of the Singapore stock market, and Nasdaq aims to streamline a framework for dual listings on the two bourses.
Singapore needs this much more than the US does – but the timing just might work out for the southeast Asian city state.
Euromoney has reported for several years now on the problems SGX faces. In recent years there have been more delistings than important new listings. There are few obvious blue-chip candidates left for listings, and much of the real estate suitable for real estate investment trusts is already in one.
|Boon Chye Loh, SGX|
Liquidity is weak and, while Singapore has successfully fostered new tech and digital plays, there is no guarantee that they will list in Singapore, or even anywhere at all, given the availability of private funding.
SGX chief executive Boon Chye Loh has dealt with this challenge by building other sources of income, such as global commodities, renminbi futures, or freight.
From day one, he has called SGX a multi-asset exchange, and its viability has increasingly depended upon him being right.
The Nasdaq tie-up, though, is opportunistic.