SGX Chinese Listings Could Surge Fivefold in 2-3 Years, Says CGS Chief

Over the next two to three years, the number of Chinese listings on the Singapore Exchange (SGX) could potentially rise fivefold from just a handful over the past year, according to Carol Fong, chief executive of CGS International. Ms. Fong told The Straits Times that while earlier estimates suggested only about five Chinese and Hong Kong firms could list on SGX through dual listings or share placements, “five is now conservative.”

CGS International, a wholly-owned subsidiary of China Galaxy Securities (one of China’s largest state-owned brokerages), was formed after CGS fully acquired Malaysia’s CIMB Group in 2024. Ms. Fong, who has more than 30 years of capital markets experience, emphasized that sustaining momentum in the Singapore stock market depends on attracting a broader mix of high-quality companies with strong growth stories.

Why Chinese Firms Are Looking to Singapore

Chinese companies spanning advanced manufacturing, domestic consumption, and technology are seeking more than just capital, according to Ms. Fong. “They want to internationalise and need to get non-renminbi funding,” she said. These firms are looking for international branding and access to a larger pool of investors.

The regulatory pathway to an IPO in Singapore is now shorter and “less cumbersome” for eligible companies compared to Hong Kong, where the queue for listings has grown significantly. Some estimates suggest the Hong Kong process can take well over a year to complete. Singapore’s positioning as a neutral financial hub also appeals to companies looking to raise international capital without geopolitical friction.

While mega-cap firms such as Alibaba and BYD are likely to favour Hong Kong or US markets for their deeper liquidity, mid-sized companies valued at about US$500 million (S$638 million) to US$1 billion could increasingly turn to Singapore. These firms risk being “small fish in a big pond” in Hong Kong, according to Ms. Fong. Companies with existing ASEAN operations in Indonesia, Malaysia, or Singapore are prime targets for an SGX IPO, as listing in Singapore can strengthen their regional identity and pitch to investors.

Current China-Linked Listings on SGX

Singapore has already seen a handful of China-linked listings in recent years, including bar chain operator Helens International, video graphics card maker PC Partner, and green energy provider Concord New Energy. However, Ms. Fong noted that these firms were “technical listings,” or secondary listings without fresh capital raising, which are “not enough to move the needle.”

“The focus now is to bring companies with fund-raising. That’s where you get liquidity,” Ms. Fong said. Liquidity drives analyst coverage, investor participation, and ultimately valuations, creating a virtuous cycle. “Without it, listings risk becoming symbolic rather than transformative,” she added.

Lessons From the S-Chip Saga

The renewed push to attract Chinese listings to Singapore may trigger concerns among local investors about a repeat of the S-chip saga. Between the late 2000s and early 2010s, a wave of Singapore-listed Chinese companies faced governance and accounting issues. These firms, often operating in China but incorporated offshore, faced accusations of financial fraud, including phantom factories and missing cash, leading to massive investor losses.

Examples of failed S-chip firms include FerroChina, which went bankrupt; China Sun Bio-Chem, which was delisted following accounting irregularities and missing assets; and China Fishery Group, which collapsed amid fraud allegations. Many of these firms have since been delisted or remain suspended with little investor interest.

Ms. Fong argues that the risk of a repeat of the S-chip saga is significantly lower today. In the past, Chinese firms could list in Singapore with relatively limited regulatory oversight. The listing framework has since been tightened considerably. Chinese companies seeking to list overseas must now secure approval from the China Securities Regulatory Commission in addition to meeting Singapore’s regulatory requirements. This introduces dual oversight, with both jurisdictions vetting companies before they come to market.

“The process is also more selective and time-consuming, with greater emphasis on due diligence and disclosure standards. As a result, listings are expected to be fewer but of higher quality, which is key to rebuilding investor trust,” Ms. Fong said.

Broader Market Strategy

Attracting Chinese listings is one component of a larger effort to rebuild Singapore’s listing pipeline. The bigger task is to attract domestic champions that can anchor the market, other regional ASEAN firms seeking an international platform, and Chinese companies looking to expand beyond their home base, Ms. Fong said.

She noted that larger firms can also be expected to list their overseas operations in Singapore. In 2024, for example, South Korea’s Hyundai Motor listed its Indian unit, Hyundai Motor India, on the Bombay Stock Exchange and National Stock Exchange, raising more than US$3 billion.

“Chinese firms are looking outward and Singapore is positioning itself as a gateway. At the same time, stock valuations here are recovering and liquidity in the local stock market is improving,” Ms. Fong said. However, she cautioned: “But windows do not stay open forever. Execution will determine whether the market can grow from five to 25 listings.”

FAQ

Q: What types of Chinese companies is Singapore targeting for listings?

A: Ms. Fong identified mid-sized companies valued at US$500 million to US$1 billion as prime targets, particularly those with existing ASEAN operations or significant manufacturing footprints in the region. Companies seeking non-renminbi funding and international branding are also attractive candidates.

Q: How does the current regulatory framework differ from the S-chip era?

A: Chinese companies now require approval from both the China Securities Regulatory Commission and Singapore’s regulators before listing. This dual oversight, combined with stricter due diligence and disclosure standards, is designed to ensure higher-quality listings and prevent a repeat of past governance and accounting issues.

Q: Why might Chinese companies choose Singapore over Hong Kong?

A: Singapore offers a shorter regulatory pathway to IPO, positioning as a neutral financial hub, and less geopolitical friction. Mid-sized firms may find Singapore more suitable than Hong Kong, where they risk being “small fish in a big pond,” especially if they are looking to expand within the ASEAN region.