Singapore Exchange to review listing manual

SGX seeks to boost international reputation following scandals at Chinese companies

Singapore Exchange (SGX) has announced a review of its listing manual as the bourse takes further steps to improve its reputation as an international listing venue.

SGX began meetings with market participants in July, including the corporate finance committee of the Association of Banks in Singapore, to establish a committee to undertake the review, the exchange says in a statement released today.

‘This is part of SGX’s continuing efforts to improve the Singapore securities market and keep pace with the developments in corporate governance standards worldwide,’ notes the statement.

As part of the review, the exchange says it will consider closely proposals made by the Securities Investors Association (Singapore) (SIAS) following its dialogue with shareholders in China Sky Chemical Fibre, which is being investigated by regulators.

The SIAS proposals include a call for tighter restrictions on the transfer of money raised in Singapore out of the country. They also ask SGX to seriously consider barring listings from countries which do not have a reciprocal or extradition treaty with Singapore.

The exchange wants to boost its reputation for governance and shareholder protection following a year marked by a series of scandals at Singapore-listed Chinese companies (known as S-chips), the loss of the Manchester United IPO to New York and the delay of Formula 1’s $3 bn flotation.

In July, SGX announced plans to introduce stricter rules for admission to its main board in a bid to attract more IPO listings from larger companies.

From August, companies will have to meet minimum standards in areas such as operating performance, size of IPO and price per share to secure entry to the main board.

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