China opportunity of new stock exchange: accelerate bond market Unicom to attract secondary listing

category:Finance
 China opportunity of new stock exchange: accelerate bond market Unicom to attract secondary listing


Code ficc to strengthen Shanghai New Unicom

In the future, we will strengthen cross-border RMB business and better support investment and trade between Southeast Asian countries and China, Wang Ruijie, Deputy Prime Minister of Singapore, said in a speech at Lujiazui Forum on June 18

Chen Qing said that the trading volume of USD / offshore RMB futures on the new stock exchange accounted for 80% of the worlds total, and the daily average trading volume in the first quarter of 2020 was as high as 4.9 billion USD. When the outbreak in March led to sharp fluctuations in the market, the demand for commodity trading and hedging by asset management institutions increased significantly, with the trading volume exceeding 120 billion USD, a record high. It is worth mentioning that the trading of RMB futures in non Asian trading period (after the opening of European and American trading) is also very active, contributing 40% of the trading volume.

As an important port center, Singapore has formed a complete ecosystem in commodity trading, shipping, import and export trade. China one belt, one road, one belt, one road, and China is the key hub for both Southeast Asian enterprises to enter China and Chinas capital to enter the one belt and one way market.

However, foreign exchange trading is only part of the new exchanges ficc strategy. Last year, the new stock exchange restructured its business, with one of its goals being to double ficcs revenue over the next five years.

Among them, bonds will become the main area of the new stock exchange. In recent years, foreign investors continue to buy RMB bonds, accounting for nearly 10% of the national debt. As early as November 2018 and November 2019, SGX cooperated with Bank of China and industrial and Commercial Bank of China to promote cfets-boc trading bond index and multiple sub indexes, as well as China bond ICBC bond index to global investors. SGX is the first exchange outside China to display these bond indexes. At present, we are also considering supporting financial institutions to launch ETFs linked to Chinas national debt index, as well as derivatives, so that more foreign investors can gain exposure to RMB bonds. Chen Qing said.

Attract secondary listing of China capital stock

Attracting more Chinese companies to go public is also a key part of the strategy of the new stock exchange.

In recent years, Hong Kong stock market has made many innovations. In 2018, the Hong Kong Stock Exchange opened restrictions on the listing of enterprises with the same share and different ownership structure. Since then, unprofitable biomedical enterprises have been allowed to go public in Hong Kong.

In fact, the new stock exchange is constantly innovating. In June 2018, the new stock exchange launched the Listing Rules of dual equity structure shares. Similar to the Hong Kong stock exchange, which sought reform after losing Alibaba, Manchester United of the UK intended to seek listing on the new stock exchange in 2012, hoping to adopt a dual equity structure. However, at that time, subject to the relevant rules of the company law, Manchester United finally gave up the new stock exchange and transferred to the new stock exchange.

In recent years, the competition for high-quality and innovative enterprises among major exchanges has become increasingly fierce. Take China capital stock as an example. According to wind information, there are 251 China capital stocks listed in the United States, with a total market value of $1.71 trillion. At present, there are nearly 40 enterprises that meet the criteria of secondary listing.

Specifically, the stock market of the new stock exchange is divided into main board and Kaili board. The main board is mainly for enterprises with a certain scale. The listing application requires three-year operation record, profit, market value of 150 million New Zealand dollars or operating revenue, market value of 300 million New Zealand dollars. Kaili board is mainly for high-speed growth enterprises, and there is no quantitative index in terms of listing threshold. Chen Qing said that in recent years, many companies in the medical industry and science and technology fields have sought to develop in Singapore, which is closely related to Singapores preferential policies and national industrial ecology. Singapore has a large number of investment and research institutions, private equity and venture capital that focus on Listed Companies in the medical industry, and the medical listed companies listed on the new stock exchange can obtain excellent valuation level.

At present, there are 30 companies secondary listing on the new stock exchange, with a total market value of nearly S $338 billion. They come from different regions such as Europe and Asia, such as Jardine holdings, Jardine strategy, Hong Kong land and milk international. At least 99% of the trading volume is in Singapore, Chen Qing said. Shangcheng, who was secondary listed on the main board of the new stock exchange on April 8, 2020, said Amtd international is the product of exchange reform.

Shangcheng international has become the first company with the same share and different ownership structure listed on the new stock exchange, and it is the largest secondary IPO in Singapore this year. The company was listed on the NYSE in 2019.

Gradually becoming Asias financial center

Now there is a new trend. Companies listed in Hong Kong will also choose to issue bonds in Singapore, which reflects the trend of enterprises to comprehensively utilize the financing advantages of various markets. Chen Qing said.

Behind the financing, the demand for wealth management has emerged. In recent years, Singapore has been consolidating its position as the capital center of Asia, where many trust and family offices gather.

Singapore itself is a wealth management center. After the outbreak, Singapore continues to attract capital inflows due to the need to avoid risks and changes in relevant laws, Chen said. The variable capital company law (VCC) launched in Singapore at the beginning of this year aims to attract investors to register funds and promote the development of wealth management industry in Singapore with greater flexibility and cost-effectiveness Improving the efficiency of capital flows will enable Singapore to further play a pivotal role between Asian and global capital flows. For a long time, Singapores investment fund regulatory framework is relatively backward, and many funds managed locally are actually set up overseas. In order to allow these funds to flow back and introduce new funds, Singapore announced the launch of VCC at the beginning of the year. VCC can be set as a single structure or an umbrella structure with multiple sub funds, which is basically the same as the services provided by traditional offshore centers such as Cayman Islands and British Virgin Islands. The VCC structure makes Singapores fund management more perfect and facilitates investors. For example, as a shareholder, investors can freely issue and redeem shares without the approval of other shareholders, and also fully use capital to pay dividends. Source: First Financial Editor: Wang Xiaowu_ NF

Singapore itself is a wealth management center. After the outbreak, Singapore continues to attract capital inflows due to the need to avoid risks and changes in relevant laws, Chen said. The variable capital company law (VCC) launched in Singapore at the beginning of this year aims to attract investors to register funds and promote the development of wealth management industry in Singapore with greater flexibility and cost-effectiveness Improving the efficiency of capital flows will enable Singapore to further play a pivotal role between Asian and global capital flows.

For a long time, Singapores investment fund regulatory framework is relatively backward, and many funds managed locally are actually set up overseas. In order to allow these funds to flow back and introduce new funds, Singapore announced the launch of VCC at the beginning of the year. VCC can be set as a single structure or an umbrella structure with multiple sub funds, which is basically the same as the services provided by traditional offshore centers such as Cayman Islands and British Virgin Islands. The VCC structure makes Singapores fund management more perfect and facilitates investors. For example, as a shareholder, investors can freely issue and redeem shares without the approval of other shareholders, and also fully use capital to pay dividends.