Singapore is intensifying efforts to modernize its listing rules in response to a wave of failed initial public offerings (IPOs) in Mainland China. This initiative aims to bolster the city-state’s equities market and attract more issuers during a time when regional counterparts are struggling with weakened IPO ambitions. The Monetary Authority of Singapore (MAS) and Singapore Exchange Regulation (SGX RegCo) are simplifying listing requirements as part of a broader strategy to enhance Singapore’s appeal as a destination for public listings.
The proposed changes include a shift towards a disclosure-based system and the introduction of a S$5 billion plan aimed at improving market liquidity. This plan encompasses incentives for market makers, expanded research coverage for mid-cap companies, and a focus on expediting IPO processes. According to Chee Hong Tat, Singapore’s Minister for National Development and deputy chairman of MAS, the city-state is committed to strengthening its equities market foundations. Chee stated, “We want to try and address different aspects of the market that can have a positive impact on the overall attractiveness and competitiveness.”
Experts have welcomed these moves, noting that they position Singapore as a more significant player in the Asian financial landscape. Roshan Raj, a partner at Redseer Strategy Consultants, remarked, “Singapore’s efforts to simplify listing requirements and enhance liquidity make it notably more attractive than a year ago.” Raj believes this development could compel regional stock exchanges to elevate their standards, making local listings increasingly appealing for privately held companies.
This drive for modernization comes as numerous Chinese firms have encountered difficulties in their IPO pursuits, exacerbated by market volatility, cautious investor sentiment, and evolving regulatory expectations. The pace of new listings in Mainland China has significantly slowed, with data from Yicai Global indicating that 45 companies had their IPO applications terminated by the Chinese securities regulator in the first quarter of 2023 alone.
The landscape for IPOs in China has become increasingly challenging, particularly for technology companies. For instance, Xiamen Hithium Energy Storage Technology Co. Ltd. recently experienced its second failed attempt to secure a listing in Hong Kong, with its application lapsing by the end of September. Despite the firm achieving profitability in 2024, regulators expressed concerns about its profitability margins and reliance on government subsidies, which raised questions about its long-term viability without continued support from Beijing.
The scrutiny from regulators extends to specific financial metrics, such as the company’s receivables turnover days, which stood at 227.9 days in the first half of 2025. Hithium, known for its large-scale lithium battery systems, has garnered attention as one of China’s promising new energy companies. Nevertheless, it has primarily depended on domestic investment, despite operating a regional subsidiary, Hithium Global Pte. Ltd., in Singapore.
The shifting dynamics in the IPO landscape have prompted experts to highlight the need for battery manufacturers and their clientele to adapt to these new market conditions. Jeremy Furr, Senior Vice President of Strategic Sourcing at Stryten Energy, noted, “Battery manufacturers and their customers will have to navigate these new market conditions as access to critical minerals becomes more challenging and the cost of other battery components rises.”
As Singapore revamps its listing rules, it is not only responding to local market needs but also positioning itself strategically in the broader Asian context. By addressing the evolving challenges faced by companies in the region, Singapore aims to enhance its role as a key financial hub in Asia, a move that may ultimately reshape the competitive landscape of IPOs across the continent.
