Since the 1960s, Singapore has gradually developed into an international financial center. Over the years, Singapore has attracted many internationally renowned financial institutions by virtue of its good economic and financial foundation, pro-business legal and business environment, strategic geographical location, high-quality human resources, perfect communication and infrastructure and high living standards. Today, the financial services industry has accounted for 12% of Singapore's GDP.
In Singapore, there are more than 700 large local and foreign financial institutions providing customers with a wide range of financial products and services, including trade financing, foreign exchange, financial derivatives, capital market operation, consortium loans, underwriting, mergers and acquisitions, asset management, securities trading, financial advisory services and special insurance business. These leading institutions have made great contributions to invigorating and improving the level of financial services in Singapore. According to the 2006/07 Global Competitiveness Report released by the World Economic Forum, Singapore ranks among the best in the world's most competitive financial markets, ranking first compared with Asian financial markets. In addition, in 2006, Singapore was once again rated as the most globalized country in the world by Kearney Management Consulting.
Brief introduction of Singapore stock exchange and securities market
Singapore Exchange (SGX) was established in199965438+February, which was formed by the merger of the former Singapore Stock Exchange (SES) and the former Singapore International Financial Exchange (SIMEX). Trading activities in the stock market of Singapore Stock Exchange are managed by its two subsidiaries-Singapore Stock Exchange Limited and Central Collective Private Limited. On June 23, 2000, the Singapore Stock Exchange became the first exchange in the Asia-Pacific region to be listed through public offering and private offering.
Singapore Stock Exchange is also the first stock exchange in Asia to realize full electronic trading without venue. It is committed to providing sound, transparent and efficient trading places for enterprises and investors, and helping them achieve the goals of fund-raising and investment. Over the years, it has established and created an active and efficient trading market and is famous as a first-class stock exchange in the Asia-Pacific region.
By the end of 2006, there were 707 listed companies on the Singapore Stock Exchange, with a total market value of about S $589.6 billion. These enterprises cover various industries, including manufacturing, finance, commerce, real estate, service and so on. ? Among them, the manufacturing industry (including electronics industry) accounts for a relatively high proportion, reaching 4 1%.
Singapore Exchange is a regional exchange, which has attracted enterprises from more than 20 countries and regions to list here. By the end of 2006, foreign enterprises accounted for 37% of the total number of listed companies (about 268), including 158 enterprises in Chinese mainland, Hongkong and Taiwan Province. Most foreign enterprises use Singapore as a financing platform, so many foreign enterprises have no business in Singapore. Another 63% (about 460 listed companies) are local enterprises in Singapore, many of which have income from overseas. Compared with other international markets in the region, Singapore's market is the most international.
Factors to be considered in listing in Singapore
Listing is a complicated process, and there are corresponding responsibilities after successful listing. Therefore, enterprises should fully weigh the benefits and responsibilities of listing when deciding to go public.
Benefits of listing
Listed companies will enjoy many benefits. Some of the main advantages are:
Establishing enterprise stock exchange market
Enhance the reputation and financial credibility of enterprises.
Improve the visibility of enterprises and their products
Give enterprises the opportunity to launch stock option plans for employees.
You can issue new shares and other securities for subsequent financing for the future development of the enterprise.
Use the stock of the enterprise for acquisition activities.
Provide channels for existing shareholders to cash in their investments.
Listing responsibility
Public listing has its advantages, but it also means that enterprises and their directors have more obligations and responsibilities:
Improve the responsibility to public shareholders.
It is necessary to maintain the growth momentum of dividends and profits.
More vulnerable to hostile takeover
We must understand and strictly abide by the management rules and regulations of regulatory agencies.
Improve performance reporting standards and lead to higher costs.
After listing, it will have an impact on the control of enterprises.
Media attention to enterprises will reduce the privacy of enterprises.
As a major shareholder of a private enterprise, it is extremely important to measure the benefits and responsibilities of listing according to the plans and objectives of the enterprise. Enterprises should discuss with lawyers, independent accountants and other professional consultants in detail in order to have a more comprehensive consideration.
Advantages of listing on Singapore Stock Exchange
Enterprises listed on the Singapore Stock Exchange can enjoy the advantages brought by this dynamic market. The transparent market, perfect scientific and technological services and high international reputation of Singapore Stock Exchange enable listed companies and investors to achieve their financing and investment goals while coping with market changes. In addition, the leading technology of the Singapore Exchange has opened the door for investors from all over the world to enter its market. Singapore Stock Exchange is constantly expanding its global network and enhancing its market depth and trading volume, so that market participants can have a more efficient and attractive market.
International Financial Center
Singapore stock market is the most international market in the Asia-Pacific region, with nearly 35% of listed companies coming from overseas. Compared with other capital markets in the region, this ratio is the highest, which has attracted the attention of many international fund managers to listed companies in Singapore. In addition, as an international financial center, Singapore managed S $720 billion at the end of 2005, up 26% from the previous year. There are 1500 professional fund managers and investment experts and 250 investment analysts in Singapore. All these factors make it easier for companies listed in Singapore to enter the international arena. (See Appendix 2a, Appendix 2b and Appendix 3)
Efficient financing platform
In addition to issuing new shares and raising funds, enterprises can also raise funds in the secondary market at any time for further development. Enterprises can decide the form, time and quantity of financing again according to their own business development needs and market conditions. The procedure of secondary market financing is very simple and fast. In addition, there is no foreign exchange control in Singapore, and the funds raised by issuing new shares and old shares can flow freely.
A sound legal system
Singapore is an efficient and well-managed market, and its sound legal system has always been well known. This is beneficial to those enterprises seeking to establish a good corporate governance image. In the international market, listed companies in Singapore can gain more confidence from investors and enhance their visibility.
An active stock market
Singapore's stock market is liquid. Compared with the turnover rate of several major international markets in the Asia-Pacific region, the performance of Singapore market is very prominent and active. The performance of foreign enterprises in Singapore market is more prominent. In particular, the average turnover rate of companies in Greater China is much higher than that of local companies in Singapore. Market-oriented listing criteria Singapore's stock market has open, transparent and clear listing conditions. Its market-oriented listing standards designed according to the needs of new economic development are conducive to the financing of emerging and potential China enterprises in the Singapore market. For the most critical period of enterprise development, Singapore Stock Exchange provides a good financing platform. In addition, enterprises can contact the Singapore Stock Exchange before and after listing to understand the relevant regulations and discuss various problems encountered. (See Appendix 4)
Flexible listing rules
The listing rules of Singapore Stock Exchange are very flexible. Enterprises can choose to list in Singapore only or in Singapore and other markets at the same time according to their own characteristics. Singapore Exchange does not require a place of registration or business. Enterprises can also choose one of three accounting standards, namely Singapore GAAP, international GAAP and American GAAP. In addition, listed companies can freely choose the currency of stock transactions and the currency of accounting statements.
Innovative post-marketing service
After listing, companies still need to communicate with investors frequently and maintain close relations. In order to support listed companies in this respect, the Singapore Exchange has launched several innovative post-listing services. This includes organizing regular investor exchange meetings and arranging global roadshows for listed companies. In addition, the Singapore Stock Exchange has launched the world's first exchange-initiated research program *. Through these activities, investors have a better chance to know and understand outstanding enterprises in Singapore, and enterprises can also get more attention on the international stage.
Multiple financing options
In order to meet the listing needs of various enterprises, Singapore Stock Exchange provides several listing channels for enterprises to choose from. In addition to stock listing, enterprises can also choose to list on the Singapore Stock Exchange in the form of real estate trusts (REITs), commercial trusts *, global stocks (GDRs) or foreign debt securities. Enterprises should choose appropriate financing channels according to their own needs.
Challenges faced by listing
Enterprise reorganization and reorganization
Due to historical factors, the property right structure of some enterprises is more complicated, especially state-owned enterprises and collective enterprises. Therefore, the restructuring and reorganization of these enterprises before listing will be more complicated.
Follow the international enterprise management norms
If enterprises want to be listed successfully in overseas markets, they need to follow international standards in enterprise management, so some traditional enterprises whose management level has not yet been in line with the internationally recognized management system need more time to improve. This includes the change of management concept and the selection and training of management talents. Enterprises also need to implement good corporate governance after listing.
Listing coordination
Due to the differences in the above systems and concepts, enterprises may have frictions with international intermediaries such as managers, accountants and lawyers in the process of preparing for listing. Enterprises need to communicate with these professional organizations and learn more.
Publicity activities and investor relations
At present, most foreign enterprises listed on the Singapore Stock Exchange do not operate in Singapore, so investors in Singapore don't know much about their business and operation. Enterprises should focus on explaining and publicizing to the public and investors before and after listing. Enterprises should also pay attention to maintaining good communication with investors after listing, so that investors can understand the development prospects of enterprises.
* English only.
trading hour
The trading time is from Monday to Friday, from 9:00 am to 65438+ 02: 30 noon; From 2 pm to 5 pm. In addition, there are pre-opening time (8:30 am to 9:00 am) and pre-closing time (5:00 pm to 5:06 pm). Singapore is closed for public holidays.
Trading unit
Stock trading mainly takes 1000 shares as a trading unit. However, odd share trading is also allowed.
Since April 14, 2003, the "unit stock market" has replaced the "zero share market", thus making the zero share less than.
Any number of stocks can be traded in the stock market. For example, an order to buy 1060 shares of ABC, of which 1000 shares will be traded in the existing market and the remaining 60 shares will be traded in the unit stock market. Because the transactions in the existing market and the unit stock market can be merged, the transactions of the same related stock in these two markets can be integrated into one contract.
The whole share trading remains in the existing market for the convenience of investors who are willing to continue trading with designated whole shares.