[SINGAPORE] The last week has seen good news for the Singapore Exchange (SGX). Not only is NTT’s upcoming real estate investment trust (Reit) listing likely to be the largest S-Reit listing in a decade, software company Info-Tech Systems is debuting later this week – marking SGX’s first mainboard listing in two years.
Meanwhile, the Hong Kong stock exchange – with a new chief executive at the helm – is likely to have another bumper year of initial public offerings (IPOs) again.
Hong Kong IPO boom
Some 40 IPOs are expected to be listed on the Hong Kong Exchanges and Clearing Limited (HKEX) in the first half of this year, based on publicly available information as at Jun 11. These offerings are projected to raise HK$108.7 billion (S$17.7 billion), marking a 33 per cent increase in deal volume and a remarkable 711 per cent surge in total proceeds compared to the previous year.
There were 71 IPOs last year, a 3 per cent decrease from 2023, but total funds raised reached HK$87.5 billion.
PwC forecasts that the upward trend will continue in 2025, with about 70 to 80 companies expected to list in Hong Kong, raising an estimated HK$130 billion to HK$160 billion.
Of the 36 IPOs that have already launched in Hong Kong this year, 21 have traded above their offer prices, indicated Bloomberg data. This strong performance of new IPOs has prompted South-east Asian companies to relook at Hong Kong listings, noted Jason Saw, group head of investment banking at brokerage CGS International.
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According to professional services firm EY’s Chinese mainland and Hong Kong IPO report for the first half of 2025, Hong Kong accounted for 24 per cent of global proceeds. Mega IPOs helped HKEX to secure the top global position by funds raised, reaching US$14 billion.
A key contributor to this surge was the listing activity of A-share companies – companies already listed on mainland Chinese exchanges – and their spin-offs. These deals significantly lifted the average deal size, with proceeds rising more than fivefold year on year.
Another driver are Chinese companies that are turning to Hong Kong to raise funds outside the mainland amid tightening capital controls, Leon Lim, partner at law firm TSMP Law Corporation told The Business Times.
He added that Beijing has facilitated this shift by easing filing requirements for overseas listings.
Hong Kong’s pro-market stance also helps attract companies which get “access both to deep global capital pools and China, as well as rising demand for shares in Hong Kong listings”, said CGS International’s Saw.
Strained US-China relations are further accelerating this shift, observed TSMP’s Lim. “The current US administration has been slightly unpredictable, and observers are cautioning a repeat of 2023, which saw Chinese state-owned enterprises delisting their US American Depositary Receipts en masse to avoid having to disclose information under rules imposed by the previous Trump administration,” he said.
HKEX allows secondary listings from companies on “recognised” exchanges such as those in Thailand, Indonesia, Singapore, Saudi Arabia and the United Arab Emirates.
However, mainland Chinese companies typically list in Hong Kong via separate “A+H” or dual-primary listings. Examples include major Chinese drug maker Jiangsu Hengrui Pharmaceuticals, condiment maker Foshan Haitian Flavouring and Food as well as battery giant CATL.
While the exact number of Hong Kong’s current secondary, A+H dual, or dual-primary listings is not publicly disclosed, SGX currently hosts 28 secondary listings, including names such as Mandarin Oriental, DFI Retail and electric vehicle maker Nio.
Different niches
Singapore and Hong Kong have different strengths, said Carmen Lee, head of OCBC Investment Research, who sees Hong Kong attracting more Chinese and China-related companies
Lee, who spoke to BT at OCBC’s mid-year 2025 outlook briefing last week, expects Hong Kong to remain strong in sectors such as technology, pharmaceuticals and insurance. Companies in these industries – especially those looking for relevant comparables like BYD in the electric vehicle sector or China Life in insurance – are more likely to choose Hong Kong as their listing venue.
However, she believes that companies in other sectors such as banking, real estate or aviation may consider Singapore, where they can find more appropriate benchmarks.
Chan Yew Kiang, Asean IPO leader at EY, similarly finds that SGX has an edge in Reits, serving as an attractive platform for companies across South-east Asia.
He said: “Exchanges do compete for quality listings, but they are also complementary in that success will make for a robust IPO and capital market. Alliances between exchanges and secondary listings enable companies to leverage on a broader capital market ecosystem.”
When it comes to secondary listings, TSMP’s Lim highlighted Singapore’s stable political environment and transparent legal system as key advantages.
He also pointed out that the 2020 imposition of the National Security Law in Hong Kong has raised concerns about the city’s autonomy. This means “any issuer choosing to list its shares in Hong Kong would have to be comfortable with this risk”, he noted.
In contrast, Saw emphasised Singapore’s appeal, describing it as a “very transparent and neutral ground” with clear regulations that make it “easier to access”.
He also noted that SGX offers a faster time to market, backed by its international presence and the ability to attract capital in both US dollars and Singapore dollars, alongside a shorter IPO queue compared to Hong Kong.
With Singapore’s status as a hub for industries such as banking and capital markets, EY’s Chan believes that these sectors will “continue to be the cornerstone of being attractive to companies to consider a primary or secondary listing in Singapore”.
Doorway to South-east Asia
Even as SGX is seeking to attract high-growth companies from South-east Asia, HKEX’s newly appointed CEO Bonnie Chan has similar plans to boost its global profile by attracting secondary listings from such companies.
EY’s Chan sees Singapore as having a clear advantage, describing it as the “doorway to companies that seek to build brand equity and tap into capital across South-east Asia”.
Growing interest among companies considering a Singapore IPO has been observed by TSMP’s Lim. He added that this could possibly be in response to recent measures announced by the Monetary Authority of Singapore; and such businesses typically operate in sectors with strong investor appeal and are generally less exposed to global trade tensions and tariffs.
CGS International’s Saw echoed this, noting that Singapore-based advisers have actively approached companies not only in South-east Asia but also in North and Central Asia.
However, he acknowledged that “it has been harder to swing South-east Asian companies to the SGX, given the vibrant local market in their respective home base”.
Still, other regional dynamics could nudge companies towards listing in Singapore. Lim, for instance, observed spillover from Malaysia’s active IPO market, where issuers may face stiffer competition and need to work harder to stand out.
“Some of these issuers also view a Singapore listing as a strategic one – which speaks to Singapore’s reputation as a well-regulated and reputable global market,” he said.
