By Peng Li, iChongqing News
On March 14, Shanghai Pudong Development Bank (SPDB) and Singapore Exchange Limited (SGX) held an investment promotion conference themed on “The ‘Belt and Road’ Initiative and Singapore – New Opportunities for China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity (CCI)” in Chongqing. The event aimed to set up a communication platform for Chongqing enterprises and SGX, and facilitate Chongqing enterprises to go public in Singapore in support of CCI policy.
On March 14, Shanghai Pudong Development Bank (SPDB) and Singapore Exchange Limited (SGX) held an investment promotion conference.
Over the past three years since the official launch of the CCI, Chongqing has basically built a diversified cross-border financing channel covering international commercial loans, cross-border guarantee, overseas bond issuance and cross-border real estate trust funds through innovative policies and financial products. An appropriate example is the Chongqing Branch of SPDB. In recent years, it has underwritten the first overseas bond and pushed for the completion of the issuance of the first new currency public debt under the CCI.
However, debt financing is still the dominant one in cross-border financing projects. Enterprises still lack motivation in the aspect of seeking financing by listing. There is only one listed Chongqing enterprise in Singapore for the moment.
One of the reasons for the situation is that many Chongqing enterprises are unconscious of the Singapore capital market and the benefits of listing there.
For that reason, SPDB and SGX held the promotion event. Singapore, as an international financial center, can offer opportunities to Chongqing enterprises to raise capitals by going public there. Additionally, it provides possibilities for them to establish and improve their modern enterprise system, to raise their level of enterprise management and international image, and to take a crucial step toward the global market.
It is also more convenient and easier for enterprises to list in Singapore for financing. Compared with the capital markets in other countries and regions, Singapore’s capital market has such advantages as short listing cycle, low threshold, relatively-low listing cost, and post-marketing strong refinancing capability. Enterprises with a certain scale can apply for listing on the SGX Mainboard, while those with high-speed growth can apply for that on SGX’s “Catalist”. Generally speaking, enterprises, which meet the relevant listing requirements, can complete the listing process in 6-8 weeks.
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