Singapore is trying to give a boost to its flagging stock market with a link to the NASDAQ, allowing companies to easily list on both places.
Companies will soon have the opportunity to list in the United States and Singapore in a first-of-its-kind partnership. The SGX-NASDAQ dual-listing bridge, which will begin later this year, is part of Singapore’s drive to revitalize its bourse, which consistently lags behind other regional exchanges like the Hong Kong Stock Exchange in attracting IPOs and other deals.
The bridge will likely appeal to Southeast Asian companies that want to tap into the U.S. capital market, while enjoying “strong brand recognition” in Southeast Asia, said Chan Yew Kiang, head of ASEAN IPOs at accounting firm EY.
Tay Hwee Ling, head of capital services markets at Deloitte Southeast Asia, adds that US companies could also take advantage of the opportunity to extend their trading hours beyond the closure of US markets, as well as strengthen their presence in Southeast Asia.
The partnership also expands investment options for Asian investors looking to diversify amid geopolitical uncertainty, says Clifford Lee, global head of banking at DBS.
“Through the Global Listing Board, companies can access the best of both worlds: US market depth and Asian growth in a streamlined pathway,” said an SGX spokesperson.
A boost for Singapore?
The Singapore Stock Exchange has long suffered from low liquidity. The average daily turnover on the SGX is just $1.4 billion, compared to $29 billion on the HKEX.
“China and Hong Kong have huge populations of active retail speculators who generate high daily turnover, while Singapore’s retail base is smaller, more conservative and prefers dividends and bonds,” says Glenn Thum, research director at Philips Securities, a Singapore-based securities firm. “The HKEX’s higher liquidity and volumes attract high-frequency traders, creating a cycle that boosts valuations and attracts more IPOs.”
Hong Kong also benefits from a steady pool of Chinese companies hoping to attract global investors by entering the financial center. Mainland Chinese exchanges “benefit from the depth and breadth of the local investor base and market size,” says EY’s Chan.
Then there is the United States, which offers larger capital reserves than other Asian stock markets. This has led several Southeast Asian companies, such as ride-hailing company Grab and e-commerce company Sea, to list in the United States instead of their Southeast Asian headquarters. Most recently, Filipino food conglomerate Jollibee Foods Corporation (JFC) announced that it would bring its international operations to the United States by 2027.
The Singapore market is improving. In 2025, SGX IPO proceeds also reached their highest level since 2019, surpassing the Southeast Asian IPO market. The turnover value of securities traded on the SGX in December increased by 29% year-on-year.
Yet Singapore’s IPOs are still much lower than Hong Kong’s. Singapore’s largest IPO, NTT DC REIT, raised $773 million; in comparison, CATL’s secondary listing in Hong Kong raised more than $5 billion.
Not a “miracle solution”‘
But Philips Securities’ Thum warns that the bridge is not a “silver bullet” as companies will still face a local liquidity crisis unless US investors actually start trading during Singapore’s business hours.
Additionally, only companies with a market capitalization above S$2 billion ($1.6 billion) are eligible for the dual-listing bridge, meaning only a small number of Southeast Asian companies will be eligible. For example, QAF Limited, a Singaporean food conglomerate home to bakery brands like Gardenia and Bonjour, has a market capitalization of around $546 million, meaning it would not be able to apply for a dual listing on Nasdaq.
For comparison, the HKEX secondary listing threshold is only $385 million in market capitalization.
This story was originally featured on Fortune.com
