The Shandong province is a fast developing region in China. Shandong-Singapore ties have been strengthened in recent years by the Singapore-Shandong Business Council (SSBC). The SSBC is co-chaired by Minister Chan Soo Sen and Mr Sun Shoupu, Vice Governor of Shandong Province, with International Enterprise (IE) Singapore serving as the secretariat for the SSBC in Singapore.
This is SGX’s second formal co-operation with China provincial authorities for the promotion of listings on SGX. The MOU with SDDRC aims to promote larger listings of Shandong enterprises on SGX. There are currently eleven Shandong companies listed on SGX. The first Shandong listing was in February 2001.
Under this MOU, the SDDRC will assist in the verification of corporate information and other background information of potential listing aspirants, as well as facilitate regulatory processes and approvals from Chinese authorities. In its capacity as the provincial authority, the SDDRC will support SGX in its supervision of listed Shandong companies. Other areas of co-operation include a staff exchange programme.
The MOU signing ceremony in Jinan, Shandong will be witnessed by Mr Chan Soo Sen, Minister of State for Education & Trade and Industry, during the business mission organised by IE Singapore.
Said Minister Chan Soo Sen, the Co-Chairman of SSBC, “Singapore can play an important role in helping Shandong enterprises internationalise. This MOU is a major move toward encouraging more Shandong enterprises with good growth potential to seek a listing in Singapore. SSBC will work closely with SGX and SDDRC to target an average of three to five listings from Shandong per year.”
Mr Li Yongjian, Deputy Director-General of the Shandong Development and Reform Commission added, “This MOU will step up the momentum of Shandong companies listing on SGX. This will also improve ties between Shandong and Singapore capital markets and establish a good foundation for co-operation, while improving friendship between both nations in the spirit of greater collaboration. To fulfil this MOU, we are embarking on educating our listing candidates; strengthening communication with Singapore to assist in the listing process and supervision of Shandong listed enterprises.”
Mr Ang Swee Tian, Vice Chairman, Singapore Exchange Securities Trading Limited said, “Our co-operation with SDDRC serves to boost the attractiveness of SGX as a listing venue. More importantly, this initiative will give us insights into the Shandong corporate landscape and capital-raising needs. This effort will improve confidence and interest of investors, and in the long term, enhance our position as the Asian Gateway for China companies seeking access to international funds.”
Collaborating with selected China provincial government is part of SGX’s listings strategy to attract larger companies to list here. Similar collaboration will be extended to selected China provinces and cities in the near future.