S'pore and HK exchanges compete for Vietnam listings
S'pore and HK exchanges compete for Vietnam listings | |||
| New battleground drawn up amid shrinking numbers of IPOs from China | |||
| By Lee Su Shyan, Companies Correspondent | |||
Both exchanges want to attract Vietnamese firms to take up the slack from the dwindling numbers of Chinese companies seeking listings abroad. The overseas listing ambitions of China firms took a hit last September when Beijing said they must first get approval from the securities regulator. The move is expected to hit Singapore and Hong Kong, which have drawn scores of China listings. The Singapore Exchange's (SGX's) response was to announce recently that it will look at alternatives - such as Vietnam. The Hong Kong Stock Exchange (HKSE) has also taken up the challenge, saying that it, too, is keen on Vietnam. Its spokesman told The Straits Times that a three-year strategic plan set out late last year included Asia, and not just the places that the HKSE traditionally focused on, such as Hong Kong and China. He said the HKSE has organised road shows to Vietnam to explain the merits of listing in Hong Kong, adding that 'these promotional efforts will continue'. Mr Daniel Ng, the head of corporate finance at the investment banking arm of BOC International in Hong Kong, told ST that 'we are seeing interest from a variety of industries and businesses in Vietnam and we are also working with the HKSE in this regard'. He said Vietnam has been identified as one of the 'tigers' in Asia and one of the more promising countries for capital-raising activities. Mr Ng, who is visiting Vietnam soon, admitted that Singapore may have an advantage as it is part of Asean. Vietnam is also an Asean member. But he said the HKSE was the second-largest market for initial public offers (IPOs) last year, surpassing the New York Stock Exchange. The SGX has not let the HKSE do all the running. It has signed agreements with the Hanoi Securities Trading Centre and the Ho Chi Minh City Securities Trading Centre, which include helping Vietnamese firms list here. The Monetary Authority of Singapore (MAS), the SGX and Vietnam government agencies also have a tie-up to help Vietnam expand capital markets. Mr Lawrence Wong, the executive vice-president and head of listings at SGX, said: 'We hope to have the first Vietnamese company listed by this year or early next year.' The SGX said there is interest from manufacturers and financial services firms, and it is working with some firms to explore possible listings. Sources said Vietnamese dairy firm Vinamilk, with a market value of about US$2 billion (S$3.1 billion), could list here early next year. Apart from the HKSE challenge, there could also be other stumbling blocks such as the SGX's proposal to revamp listing rules and its plans for a new board. Lawyer Robson Lee from Shook Lin & Bok said: 'Until the new rules are definitive, it would be difficult to market Singapore to foreign issuers during this transitional phase.' Other changes may result once the MAS and the SGX assume the supervision of corporate governance in September. These may have an impact on listing rules so advisers will need time to digest any changes and update the companies. Vietnamese firms might also opt to stay at home, given the strength of its domestic stock market. The Vietnam stock market index is up 38 per cent this year, compared with the Straits Times Index's 19 per cent rise.
Strong interest SGX signed an agreement with the Hanoi Securities Trading Centre in April to help Vietnamese companies list in Singapore and gain access to international capital. They will share information on market regulation and enforcement, while SGX will educate Vietnamese companies eyeing a Singapore listing about its listing rules. 'We hope to have the first Vietnamese company by this year or early next year.' 'We are seeing interest in a variety of industries and businesses in Vietnam and we are also working with the HKSE in this regard.' | |||
posted by Alex at
3:55 AM
0 Comments:
Post a Comment
<< Home