Saturday, January 09, 2010

Singapore, SGX and our neighbours

For year 2010 in Hong Kong / Shanghai / Shenzen
South China Morning Post reported a few days ago that Hong Kong may raise more than HK$300 billion (about SGD60bio) this year through initial public offerings albeit Shanghai and Shenzhen will do better, according to estimates by PWC. PWC forecasts there will be 60 listings this year in Hong Kong. HK$300 billion would represent a 23 per cent increase from last year.

For year 2009 in Hong Kong / Shanghai / Shenzen
- 73 IPOs in Hong Kong last year raised HK$243.7 billion (far exceeding PwC's predictions at the beginning of the year of HK$100 billion).
- Shanghai and Shenzhen bourses raised 185.6 billion yuan (HK$210.9 billion) combined.

For year 2009 in Singapore

- $2.84 billion were raised by the 23 IPOs (about 20 times LESS than Hong Kong)
- $8.29 billion from 17 listed firms delisted, called it a day and went private (due mainly to Chartered Semicon, SPC and CK Tang) (Source - BT Jan 4, 2010)
- Turnover in structured warrants hits 4-year low. Average daily volume last year plunged to $43m from $84m in 2008. (Source - BT Jan 8, 2010)

Countermeasures in motion:-
- new CEO for new ideas?
- Jan 7, 2010 - SGX proposes Special Purpose Acquisitions Company scheme and changing its listing criteria.

We will be watching as the new CEO of SGX gets to work.

1 comment:

dg said...

Hey Edgar,

It will be interesting to see how many IPOs hit China's newest exchange, Growth Enterprise Market. I think you'd find my blog interesting, . I've recently posted on economic issues in China and Warren Buffet, both of which you recently discussed. I hope to see more of your posts.