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More and more Chinese businesses are turning to Singapore as a crucial gateway to Southeast Asia, recognizing the Singapore Exchange as a welcoming and efficient platform for raising capital. The exchange is especially attractive for companies seeking to expand within the region and explore medium- to long-term growth prospects. It serves not only as a financial channel but also as a strategic platform for Chinese companies to integrate into Southeast Asia’s industrial ecosystem.
In fiscal year 2025, six new companies listed on the exchange, raising a total of SGD 25.7 million (roughly USD 20 million). Industry insiders anticipate that at least five Chinese firms will either go public, complete secondary listings, or conduct share placements on the platform within the next 12 to 18 months. Currently, the exchange hosts about 600 listed companies with a combined market capitalization exceeding USD 600 billion. Approximately 20 percent of these companies are from China, spanning sectors such as manufacturing, consumer goods, and real estate.
However, compared to larger markets like the Hong Kong Stock Exchange, the Singapore platform has relatively lower liquidity and a smaller overall market size. Last year, Singapore saw only four initial public offerings, significantly fewer than Hong Kong’s 71. In the first half of this year alone, Hong Kong added 43 IPOs. Still, the exchange’s institutional advantages and currency flexibility make it highly appealing for Chinese firms looking to expand into Southeast Asia and enhance their international capital structures.
Many experts believe that listing on this exchange allows companies to position Singapore as a strategic hub for Southeast Asia, whereas Hong Kong and US exchanges are often chosen for broader access to global capital and higher financing potential. A Shanghai-based executive, involved in overseas expansion efforts, highlighted that the Singapore dollar is highly internationalized, with manageable exchange rate fluctuations and a very accessible environment for cross-border capital flows.
For businesses, this exchange is more than just a fundraising venue; it’s seen as a key launching pad into the Southeast Asian supply chain and a foundation for implementing localized strategies. Beyond company listings, the platform is actively expanding its international cooperation and financial product innovation. Notably, in May 2023, the exchange signed a memorandum of understanding with the Shanghai Stock Exchange to enhance ETF connectivity.
As of July 31, ten cross-border ETF products had been introduced under the China-Singapore ETF Connect scheme, managing assets exceeding CNY 3 billion (around USD 421.4 million). International investors view China’s market favorably, especially given its robust performance over recent months. Trading activity in instruments like MSCI China A50 Index Futures and USD-CNH currency derivatives has surged significantly.
While many investors continue to focus on China’s traditional sectors such as manufacturing and infrastructure, there has also been increased interest in emerging industries including renewable energy and technological innovation.
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