There have been allegations for years that SGX lowered listing standards to attract China listings in an attempt to keep up with HKEC. Of course SGX denies this. The mgrs in SGX would, wouldn’t they? And self-proclaimed small investors’ watchdog, SIAS, rightly pointed out that most S-Chips did not have regulatory problems. Local journalists blamed economic conditions for the disappointing performance of S-Chips.
But yesterday’s Lex in FT pointed out an interesting statistic, over the past 10 years, the FTSE-Straits Times index of Singapore-listed Chinese companies is down 34 per cent. Hong Kong-quoted Chinese stocks are up 685 per cent. It said SGX relaxed standards.
Anything to say central bank; SIAS; SGX; and our “nation-building”, “constructive” media?
Would Oz investors want S’pore standards on ASX, if SGX did relax standards?
MAS did not do a gd job on minibonds and other credit structured notes. It and its HK counterpart did not act when banks sold the notes using various practices later banned. It did not force the banks to compensate investors. The HK regulator forced compensation.
This led to the absurd situation where DBS compensated HK investors, while giving the finger to S’poreans. http://atans1.wordpress.com/2010/08/06/what-abt-high-notes-sm-goh/ So waz a national champ for? To screw S’poreans?
If it is shown that MAS failed to prevent SGX from lowering IPO standards, it will cause problems for one Goh Chok Tong, the chairman of MAS, SM and hubby of “peanuts” Choo.
In turn this would reflect badly on the PAP, the governing party since 1959.
BTW why investors hate acquirers http://atans1.wordpress.com/2010/08/16/why-investors-dont-like-acquirers/