Latest news with #JasonSaw
Business Times
04-06-2025
- Business
- Business Times
More Chinese corporates eyeing deals in Asean, secondary listings on SGX
[SINGAPORE] Chinese corporates are increasingly looking for deals in South-east Asia amid rising uncertainty from US trade policies, said Jason Saw, head of investment banking at CGS International. Saw expects CGSI will see eight to 10 major deals in the coming months, in its four key markets in Malaysia, Indonesia, Singapore and Thailand, with many of these transactions coming from Chinese and Hong Kong-based companies. These companies are in the infrastructure, green energy, manufacturing, and healthcare sectors. 'Essentially, our focus is to look for companies that have growth – they're not your old-school economy ideas where growth is in the single digits; a lot of the opportunities we bring are new thematics,' said Saw in an interview with The Business Times. Particularly in Singapore, Saw said he sees interest from Chinese companies to make secondary listings on the Singapore Exchange (SGX). 'If you have monitored the markets this year, A+H share listings have been very hot... So if we can replicate a bit of that success in Singapore, I think it'll be a very big win,' Saw said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up He raised the example of Contemporary Amperex Technology (CATL)'s dual listing in Hong Kong and Shenzhen. A+H share listings refer to Chinese companies that list their shares on the Shanghai or Shenzhen Stock Exchange, known as A-shares, and the Hong Kong Stock Exchange, known as H-shares. In May, Shenzhen-listed CATL listed in Hong Kong in the world's biggest initial public offering (IPO) this year, signalling strong prospects for Chinese equities despite global market uncertainty. These Chinese corporates like that Singapore can give them international recognition, and that the SGX is a transparent neutral ground. They can also have a shorter time to market if they list in Singapore, given that the queue for IPO listings in Hong Kong or mainland China is 'quite long', Saw said. Deglobalisation After US President Donald Trump's 'Liberation Day', Saw said he saw rising engagement from corporates, especially from Chinese companies. The escalation in the trade war between US and China has increased the appetite for diversification, he noted. Saw said: '(Chinese corporates) seem to understand the need to diversify from the US and into other markets, and South-east Asia is clearly on their radar.' Chinese companies are also interested in building distribution channels in the region. Saw said the South-east Asian consumer distribution is 'under appreciated' because the markets are fragmented. 'What they want to do is to export that product out into this region, find local partners and grow the business to cater for the local population – Asean has 600 million consumers; if every head count consumes one item, that's a huge market for each and every Chinese product out there.' Much of the conversation that he has with Chinese companies also revolves around serving the local markets. 'Beyond capital market equities, we are driving a lot of conversations in terms of foreign direct investment (FDI) as well,' he said. 'Iff anything, the last (few months) taught you that you cannot rely on one country as your end market and you cannot depend on one location as your manufacturing.' Asean-China growth For CGSI, Saw sees the biggest opportunities from the growth of China-Asean business relations. He noted that the securities company has a unique position – it has been present in South-east Asia for decades, yet its parent company is Chinese state-owned brokerage and investment bank China Galaxy Securities. 'Because we are state owned, (Chinese companies) are even more comfortable to work with us to share information and their strategy,' he said. Nevertheless, Saw said the firm services 'anyone that comes into South-east Asia' – around 90 per cent of its revenue from IPOs today are still intra-Asean. 'We are just starting this journey of people wanting to come to South-east Asia in a more aggressive manner, and there's a lot of sectors that require investments and have growth opportunities,' he said. In the past two years, CGSI has obtained investment banking business licenses in Indonesia, Malaysia, Singapore and Thailand – allowing it to participate in activities including IPOs, corporate financing and fundraising. Saw expects China flows will have a greater part to play in the business in the years ahead, given that most deals need time to progress. 'I'm quite excited about the future…because there are deals that we're trying to do now, and if they materialise, that fits into the Asean-China (trend) that we are seeing.'
The Star
19-05-2025
- Business
- The Star
More Chinese firms target SGX listings
SINGAPORE: At least five companies from mainland China or Hong Kong are planning initial public offerings (IPOs), dual listings, or share placements in Singapore in the next 12 to 18 months, four sources say, as Chinese firms look to expand in South-East Asia amid global trade tensions. The companies include a Chinese energy company, a Chinese healthcare group, and a Shanghai-based biotech group, said the sources, who have direct knowledge of the matter, but declined to name the firms as the plans are not finalised. The listings would give a boost to Singapore Exchange Ltd (SGX), which, despite being a popular venue for yield plays such as real estate investment trusts, has been struggling to attract mega listings and bolster trading volumes. SGX hosted just four IPOs in 2024, according to its website. That compares with 71 new company listings recorded by its rival regional bourse Hong Kong Exchanges and Clearing Ltd. Chinese companies are looking to tap the Singaporean bourse as they look to enter, or expand business in, South-East Asia amid a trade war with the United States, Jason Saw, investment banking group head at CGS International Securities (CGSI), said. Enquiries about listings on SGX 'shot through the roof' after President Donald Trump ramped up his trade actions against China, Saw said. 'For the next years and decades, gateways from China to the world are going to be more important,' said Pol de Win, senior managing director and head of global sales and origination at SGX. 'Singapore is an important gateway, whether it's trade (or) business activity from China to the outside world, and a listing in Singapore is an important component of that.' CGSI, a unit of state-owned brokerage China Galaxy Securities, is working with at least two China-based companies to list on the SGX as early as this year, according to Saw. He declined to name the companies. Some of the mainland Chinese and Hong Kong companies could raise around US$100mil via primary listings in Singapore, said one of the sources. SGX is usually not the first choice for Chinese companies eyeing an offshore market debut. Most of them prefer Hong Kong due to Beijing's support and a large pool of institutional and retail investors more familiar with Chinese brands. Beijing's efforts to boost ties with South-East Asia, amid escalating tension with Washington, have, however, encouraged some Chinese companies to increase their presence in the region, capital market advisers said. The listing plans in Singapore come after the city-state in February announced measures to strengthen its equities market, which included a 20% tax rebate for primary listings, and vowed to unveil a next set of measures in the second half of 2025. The initiatives are set to boost interest in the local IPO market, said Ringo Choi, EY's Asia-Pacific IPO Leader, adding that Singapore's 'political stability and neutral stance' on geopolitical matters should appeal to companies. Not many, however, see Singapore closing its gap with Hong Kong in equity listings in the near future, due to factors including Singapore's relatively conservative investors and stricter listing requirements. 'You need to make it easier for companies, especially technology companies, to list,' said the managing director of a Singapore-based multinational software company, who declined to be named as he was not authorised to speak to the media. 'Most of the startups in the region are headquartered in Singapore, so this should be the place they list.' — Reuters
Yahoo
17-05-2025
- Business
- Yahoo
Exclusive-Some Chinese companies eye Singapore listings to expand markets amid trade war
By Yantoultra Ngui SINGAPORE (Reuters) -At least five companies from mainland China or Hong Kong are planning IPOs, dual listings, or share placements in Singapore in the next 12 to 18 months, four sources said, as Chinese firms look to expand in Southeast Asia amid global trade tensions. The companies include a Chinese energy company, a Chinese healthcare group, and a Shanghai-based biotech group, said the sources, who have direct knowledge of the matter, but declined to be named or to name the firms as the plans are not finalised. The listings would give a boost to Singapore Exchange Ltd (SGX), which, despite being a popular venue for yield plays such as real estate investment trusts, has been struggling to attract mega listings and bolster trading volumes. SGX hosted just four initial public offerings in 2024, according to its website. That compares with 71 new company listings recorded by its rival regional bourse Hong Kong Exchanges and Clearing Ltd. Chinese companies are looking to tap the Singaporean bourse as they look to enter, or expand business in, Southeast Asia amid a trade war with the United States, Jason Saw, investment banking group head at CGS International Securities, said. U.S. President Donald Trump imposed tariffs of 145% on imports of Chinese goods, and China in turn raised tariffs on U.S. goods to 125%, before the two sides agreed a 90-day pause last weekend. But uncertainty remains, given the time limit and the Trump administration's unpredictability. Enquiries about listings on SGX "shot through the roof" after Trump ramped up his trade actions against China, Saw said. "For the next years and decades, gateways from China to the world are going to be more important," said Pol de Win, senior managing director and head of global sales and origination at SGX. "Singapore is an important gateway, whether it's trade (or) business activity from China to the outside world, and a listing in Singapore is an important component of that." De Win did not mention the listing plans of the Chinese and Hong Kong firms. 'GROWING INTEREST' CGS International, a unit of state-owned brokerage China Galaxy Securities, is working with at least two China-based companies to list on the SGX as early as this year, according to Saw. He declined to name the companies. Some of the mainland Chinese and Hong Kong companies could raise around $100 million via primary listings in Singapore, said one of the sources. SGX is usually not the first choice for Chinese companies eyeing an offshore market debut. Most of them prefer Hong Kong due to Beijing's support and a large pool of institutional and retail investors more familiar with Chinese brands. Beijing's efforts to boost ties with Southeast Asia, amid escalating tension with Washington, have, however, encouraged some Chinese companies to increase their presence in the region, capital market advisers said. The listing plans in Singapore come after the city-state in February announced measures to strengthen its equities market, which included a 20% tax rebate for primary listings, and vowed to unveil a next set of measures in the second half of 2025. The initiatives are set to boost interest in the local IPO market, said Ringo Choi, EY's Asia Pacific IPO Leader, adding that Singapore's "political stability and neutral stance" on geopolitical matters should appeal to companies. Not many, however, see Singapore closing its gap with Hong Kong in equity listings in the near future, due to factors including Singapore's relatively conservative investors and stricter listing requirements. "You need to make it easier for companies, especially technology companies, to list," said the managing director of a Singapore-based multinational software company, who declined to be named as he was not authorised to speak to the media. "Most of the startups in the region are headquartered in Singapore, so this should be the place they list."
