SGX recently released a report detailing for the first time the number of listed-companies which have had their stocks suspended from trading for 12 months or more. This report will now be a yearly affair.
Of the 20 companies, 17 are S-chips (companies which have their operations in China but are listed on SGX), two are Indonesian companies listed here, and only one is a local company.
Surprising that SGX washes its dirty underwear in public.
In the late 90s and noughties, SGX became the place for PRC companies to be listed because SGX requirements were less stringent than those of the Hong Kong stock exchange.
Problems with S-chips soon surfaced which included loan defaults and fraud (missing cash, long-overdue receivables, or significant over-payments to suppliers only to have these amounts written-off later.) In 2009, the Singaporean authorities even appealed to their Chinese counterparts to maintain ‘stringent supervision’ over their companies that list on the SGX. I’m sure they were told to F-off: “SGX collects the fees, SGX’s problem”, I’m sure the S’porean authorities were told.
Retail investors lost serious money, something that even the constructive, nation-building media reported.
Yet despite continuing problems with S-chips (missing cash, long-overdue receivables, orsignificant over-payments to suppliers only to have these amounts written-off later still occur), and London’s nasty experience of Chinese listings on AIM (eg London-based directors not hearing from the China-based CEO, or the corporate “chop” going AWOL after the China-based CEO was sacked), SGX’s plans for the future include attracting more S-chips.