Shifts in Asia’s financial hubs

“Singapore’s government is contemplating a new set of reforms to support the SGX. The measures, proposed by the Singapore Venture and Private Capital Association, an industry group including state funds GIC and Temasek, and local and global venture firms, mirror practices in Australia and Thailand. They would mandate stock market participation by private funds such as family offices and allow investment pension and sovereign funds.

Other initiatives would shore up listing, for example by offering grants to reduce listing costs and increase research coverage of Singapore-listed stocks. The exchange has also tried to broaden market access by collaborating with Thailand’s stock exchange on depository receipt listings, providing investors the opportunity to hold equity in foreign companies.

Even if the reforms are pushed through, a more holistic approach may be needed to encourage local funds and asset managers to trade more actively, along with new corporate governance and disclosure rules to shore up long-term investor confidence. However, we believe the city-state is well-positioned to attract foreign investment outflows from Hong Kong. The timely implementation of well-rounded reforms will make it an attractive destination for long-term investors". Read more....