Singapore Exchange is toughening its listing rules in the wake of a series of accounting scandals at small Chinese firms, hoping stronger corporate governance will attract more large companies to the city state.
Recent scandals at companies such as KXD Digital Entertainment have dealt a blow to the reputation of SGX-listed companies, coming as stock sales -- including intial public offerings (IPOs) -- have tumbled due to turmoil in global
markets.
The SGX, whose year has been marked by the delay of an up to US$3 billion ($3.8 billion) listing by Formula One motor racing and the loss of football club Manchester United’s IPO to New York, said the tighter rules would make it more attractive for larger firms to go public in Singapore.
Although the exchange doesn’t generate a lot of revenue from new listing fees, bigger offerings would prop up daily trading volumes, where it gets the bulk of its income.
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