In a landscape marked by shifting geopolitical dynamics and trade tensions, at least five companies from mainland China and Hong Kong are eyeing the Singapore Exchange (SGX) for initial public offerings (IPOs), dual listings, or share placements over the next 12 to 18 months. This move underscores a strategic pivot as Chinese firms seek to expand their foothold in Southeast Asia, a region increasingly viewed as a viable alternative amidst rising tariffs and economic uncertainty.
The companies in question span various sectors, including energy, healthcare, and biotechnology, although specific names remain undisclosed due to the preliminary nature of their plans. This influx of potential listings could provide a much-needed boost to SGX, which has struggled to attract large-scale listings and bolster trading volumes in recent years. In stark contrast to its regional competitor, the Hong Kong Exchanges and Clearing Ltd., which saw 71 new company listings in 2024 alone, SGX managed a modest four IPOs during the same period.
“Singapore is an important gateway for trade and business activity from China to the outside world,” remarks Jason Saw, head of investment banking at CGS International Securities. His insights reflect the growing sentiment among Chinese companies that view Singapore not only as a launchpad into Southeast Asia but also as a strategic response to the ongoing trade war with the United States. President Trump’s imposition of steep tariffs—145% on Chinese goods—has created a ripple effect, prompting a reciprocal increase in tariffs from China and a subsequent spike in inquiries about listings on the SGX.
The urgency for Chinese firms to diversify their market presence is palpable. Saw notes that inquiries about listing in Singapore surged significantly following the escalation of trade actions by the Trump administration. This trend is corroborated by capital market advisers, who suggest that the geopolitical landscape is reshaping how Chinese companies approach international markets.
In light of these developments, SGX has implemented measures aimed at invigorating its equities market, such as a 20% tax rebate for primary listings announced in February 2025. These initiatives are designed to enhance Singapore’s attractiveness as a listing destination, particularly for companies looking for a politically stable environment amid global uncertainties. Ringo Choi, EY’s Asia Pacific IPO Leader, emphasizes that Singapore’s “political stability and neutral stance” on geopolitical matters can serve as a magnet for companies considering an IPO.
However, while these measures may incrementally close the gap with Hong Kong, experts caution that significant challenges remain. The SGX is often not the first choice for Chinese companies seeking offshore market debuts; many still prefer Hong Kong, drawn by its supportive regulatory framework and a well-established network of institutional and retail investors familiar with Chinese enterprises. “You need to make it easier for companies, especially technology companies, to list,” suggests a managing director at a Singapore-based multinational software firm, highlighting that a more accommodating environment could drive local startups to consider SGX as their primary listing venue.
Looking ahead, some analysts project that these mainland Chinese and Hong Kong firms could raise significant capital—potentially around $100 million—through primary listings in Singapore. This aligns with the broader trend of Beijing encouraging stronger ties with Southeast Asia as part of its strategic response to escalating tensions with Washington.
As the global economy continues to navigate the complexities of trade wars and shifting alliances, the potential for increased IPO activity in Singapore stands as a testament to the adaptability of Chinese firms. Their willingness to explore new markets signals a broader trend of resilience and strategic foresight in the face of adversity. If these companies successfully navigate the listing process, they could not only bolster their own growth trajectories but also breathe new life into Singapore’s IPO landscape, further establishing the city-state as a critical hub for international capital flows.
