Singapore Aims to Revitalize Stock Exchange with Tax Rebates Amidst Hong Kong’s IPO Surge
Singapore is implementing notable policy changes, including a 20% tax rebate for primary listings, in an effort to boost its stock exchange.This move comes as the Singapore Exchange (SGX) faces criticism for being perceived as dull and lacking liquidity, with its market dominated by sectors such as property, conglomerates, and the three major local banks. This illiquidity is seen as a deterrent to investor sentiment, potentially leading to lower valuations and fewer new listings.
In contrast, Hong Kong’s stock market is experiencing a resurgence, a phenomenon attributed by some to a “DeepSeek moment” and supportive pro-growth policies from Beijing. Lorraine Tan, director of equity research for Asia at Morningstar, suggests that Hong Kong’s market is also benefiting from a rebound after years of underperformance, making it “relatively cheap in valuation terms.” She further notes that the increase in Hong Kong ipos could be a result of Chinese regulators approving mainland companies to list on its exchange.
Recent high-profile IPOs in Hong Kong include those of home appliance maker Midea Group,ice cream giant Mixue,and insurer FWD Group.Additionally, major companies such as automaker Chery, AI startup minimax, Malaysian aviation firm Capital A, and fast fashion platform Shein are reportedly considering Hong Kong for their initial public offerings. According to S&P global Market Intelligence Data, Hong Kong is on track to become the world’s leading IPO destination this year.
Despite these challenges, there is optimism that Singapore’s policy reforms will help the market overcome its “lackluster image.” The recent listing of NTT DC Reit is viewed as an early indicator of returning listings,with expectations that this positive momentum will continue into the latter half of the year.
