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Sunday 15 November 2009
Chongqing, SGX mull over listing pact
Singapore Exchange (SGX) and the Chongqing government are mulling over ways to promote listing of Chongqing companies on SGX and boost transparency of listing candidates.
Chongqing also discusses financial centre project with Tharman
By LYNETTE KHOO 03 November 2009
Singapore Exchange (SGX) and the Chongqing government are mulling over ways to promote listing of Chongqing companies on SGX and boost transparency of listing candidates.
One possibility is a collaboration pact that spells out measures for pre-listing assessment of candidates by the Chongqing authorities and joint monitoring efforts post-listing, a Chongqing official said.
Some Chongqing officials were here on a familiarisation tour hosted by SGX yesterday. They also met Finance Minister Tharman Shanmugaratnam and the Government of Singapore Investment Corporation (GIC).
Luo Guang, Chongqing’s deputy secretary general and director of Financial Service Office, said there are now at least 10 Chongqing companies interested to list on SGX, with prospective market capitalisations of more than $100 million each.
A listing pact, if it materialises, would pave the way for pre-listing assessment by the Chongqing authorities and a joint monitoring arm to oversee these listings.
‘Both the authorities can increase surveillance of companies and improve their transparency,’ Mr. Luo said. ‘I think this is necessary and we are willing to do it.’
Setting up a common monitoring unit for Chongqing companies post-listing will allow the Chongqing government to be aware of how the companies fare on the SGX and allow Singapore investors to understand how these companies are doing in China, he added.
SGX has inked memoranda of understanding (MOU) with the provincial governments of Fujian, Zhejiang, Shandong, Liaoning, as well as the Wuxi municipal government, to encourage Chinese companies to list in Singapore.
But a persisting concern among investors here has been the difficulty of monitoring foreign companies and the lack of enforcement over errant management residing in China as Singapore does not have an extradition treaty with China.
Investors have turned jittery following the fallout of some Chinese firms such as China Printing & Dyeing and Oriental Century where there has been no recourse.
‘If companies do not abide by the rules, we should seek joint enforcement. This will stimulate stability in both markets and ensure that our companies will grow in an orderly manner,’ Mr. Luo said.
He felt that compared to Hong Kong, SGX is a better listing platform for Chongqing’s small and medium enterprises as they can attract more attention here. While Shenzhen’s Chi-Next board is appealing to Chinese firms, the long queue is also causing them to seek alternatives, Mr. Luo said.
He also eyed potential in SGX’s revamped Catalist board given its less stringent rules compared to the mainboard.
So far, SGX has seen the listing of only one Chongqing company, Ying Li International Real Estate, which was listed on the mainboard in September last year through a backdoor listing.
The Chongqing officials also discussed with Mr. Tharman yesterday on how Singapore companies can join in developing Wu Yi Road into a world-class financial centre.
Ying Li is the only Chongqing property developer involved in discussions for this project. Mr. Luo said the municipal government is also in talks with two Singapore-based real estate investment funds on the prospect of investing in the project.
Chongqing is looking to attract foreign banks, brokerages, and funds to set up shop there as it seeks to develop an over-the-counter market, futures exchange, and an electronic bills exchange, Mr. Luo said.
He believes Chongqing will continue to spearhead growth in western China, having expanded over 12 per cent in GDP yearly, and hopes more Singapore investors will participate in its growth.
1 comment:
Chongqing, SGX mull over listing pact
Chongqing also discusses financial centre project with Tharman
By LYNETTE KHOO
03 November 2009
Singapore Exchange (SGX) and the Chongqing government are mulling over ways to promote listing of Chongqing companies on SGX and boost transparency of listing candidates.
One possibility is a collaboration pact that spells out measures for pre-listing assessment of candidates by the Chongqing authorities and joint monitoring efforts post-listing, a Chongqing official said.
Some Chongqing officials were here on a familiarisation tour hosted by SGX yesterday. They also met Finance Minister Tharman Shanmugaratnam and the Government of Singapore Investment Corporation (GIC).
Luo Guang, Chongqing’s deputy secretary general and director of Financial Service Office, said there are now at least 10 Chongqing companies interested to list on SGX, with prospective market capitalisations of more than $100 million each.
A listing pact, if it materialises, would pave the way for pre-listing assessment by the Chongqing authorities and a joint monitoring arm to oversee these listings.
‘Both the authorities can increase surveillance of companies and improve their transparency,’ Mr. Luo said. ‘I think this is necessary and we are willing to do it.’
Setting up a common monitoring unit for Chongqing companies post-listing will allow the Chongqing government to be aware of how the companies fare on the SGX and allow Singapore investors to understand how these companies are doing in China, he added.
SGX has inked memoranda of understanding (MOU) with the provincial governments of Fujian, Zhejiang, Shandong, Liaoning, as well as the Wuxi municipal government, to encourage Chinese companies to list in Singapore.
But a persisting concern among investors here has been the difficulty of monitoring foreign companies and the lack of enforcement over errant management residing in China as Singapore does not have an extradition treaty with China.
Investors have turned jittery following the fallout of some Chinese firms such as China Printing & Dyeing and Oriental Century where there has been no recourse.
‘If companies do not abide by the rules, we should seek joint enforcement. This will stimulate stability in both markets and ensure that our companies will grow in an orderly manner,’ Mr. Luo said.
He felt that compared to Hong Kong, SGX is a better listing platform for Chongqing’s small and medium enterprises as they can attract more attention here. While Shenzhen’s Chi-Next board is appealing to Chinese firms, the long queue is also causing them to seek alternatives, Mr. Luo said.
He also eyed potential in SGX’s revamped Catalist board given its less stringent rules compared to the mainboard.
So far, SGX has seen the listing of only one Chongqing company, Ying Li International Real Estate, which was listed on the mainboard in September last year through a backdoor listing.
The Chongqing officials also discussed with Mr. Tharman yesterday on how Singapore companies can join in developing Wu Yi Road into a world-class financial centre.
Ying Li is the only Chongqing property developer involved in discussions for this project. Mr. Luo said the municipal government is also in talks with two Singapore-based real estate investment funds on the prospect of investing in the project.
Chongqing is looking to attract foreign banks, brokerages, and funds to set up shop there as it seeks to develop an over-the-counter market, futures exchange, and an electronic bills exchange, Mr. Luo said.
He believes Chongqing will continue to spearhead growth in western China, having expanded over 12 per cent in GDP yearly, and hopes more Singapore investors will participate in its growth.
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