FT News Briefing Singapore wants to shake up its stock market
10 snips
May 9, 2024 Shares of Arm tumble due to disappointing revenue forecasts, causing concern in the tech sector. Singapore is exploring bold initiatives to revitalize its struggling stock market and increase investor interest. Meanwhile, the EU has agreed to utilize frozen Russian assets to support armament for Ukraine. Canada makes strides to boost its oil industry with a new pipeline. In a legal twist, hedge fund manager Sir Paul Marshall faces losses in a case over WWII shipwrecked treasure, raising intriguing questions about ownership.
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SGX's Liquidity Woes
- Singapore's stock market, SGX, faces low liquidity and trading volumes, hindering its growth and attractiveness for IPOs.
- The government seeks to revitalize SGX as it lags behind other Asian exchanges, impacting its status as a financial hub.
Revitalizing SGX
- The government considers mandating stock market participation from private capital, including family offices.
- More politically sensitive suggestions include allowing pension and sovereign funds to invest, similar to Australia and Thailand.
Will This Time Be Different?
- Previous attempts to revive SGX raise concerns about whether current proposals are bold enough.
- Issues like board independence, diversity, transparency, and disclosure standards affect investor confidence and need addressing.