With the Singaporean Stock Exchange (SGX) being established in 2000, it has become one of the leading exchanges in Asia. The SGX is a governmental body that forms part of the Monetary Authority of Singapore.
What is SGX?
It is an organisation that provides many services to its clients, including research analytics and access to investment opportunities based on international equities. It also manages financial markets concerning regulatory functions and investor education programs.
Another vital function carried out by this body is being involved in institutional development activities to strengthen institutions operating within the Asian region.
Some of the main aims covered under this include developing regional capabilities related to capital market infrastructure, creating a more stable and efficient regional market and developing international standards in the industry.
The SGX is also interested in increasing financial literacy among its citizens and providing them with helpful information that can empower them to make decisions regarding investments. It would be fair to say that this exchange promotes transparency in all dealings and provides equal opportunities for everyone.
What is the central aspect of the SGX?
The central aspect of the SGX involves dealing with securities which mean trading in stocks, bonds, warrants, units in collective investment schemes, depository receipts and exchange-traded funds. The Singaporean Stock Exchange works with companies from Australia, China, India, Indonesia and Malaysia. All products listed on this stock exchange can either be bought or sold.
Companies applying to be listed on the SGX
Before a company can even apply to be listed on the SGX, it must first fulfil some mandatory liquidity and capitalisation requirements. The latter of these refers to a company’s market capitalisation determined by multiplying the total number of shares outstanding by its share price.
Inclusion into this stock exchange
However, suppose a firm wants to be considered for inclusion into this stock exchange. In that case, it must first meet several criteria such as minimum public shareholding, corporate governance standards and financial viability. Other requirements include those related to disclosure level and those for trading practices and listed securities. If these factors are not met during the listing process or afterwards, companies will have their stocks delisted from this exchange.
Yearly reviews
What’s more, the SGX conducts a yearly review of all listed companies to identify those who do not comply with its minimum public shareholding requirement and fiscal standards. These checks are conducted regularly to ensure that these firms make progress and get back on track if anything has gone missing or amiss. If you think that this may be affecting your company, then get in touch with their regulator. They will provide you with some advice and guidance on how best to resolve any issues at hand so your stock prices do not get affected and remain listed.
Significant facts about the SGX
- The Singaporean Stock Exchange was initially launched on 2 January 2000 and had a total market capitalisation of $1.38 trillion, which grew to $3.2 trillion by December 2011
- Another significant landmark was achieved when the SGX launched AsiaOne, a new platform for investors in Asia to trade Asian securities, which further increased its liquidity and enhanced access for its clients.
- The Singaporean Stock trade has an average daily turnover measured at around 1 billion dollars per day, with over 1 million transactions on its platforms every month. Moreover, it offers about 230 different types of products, thus making it one of the most comprehensive exchanges in Asia today. It is currently ranked third behind Japan and Hong Kong, respectively, when it comes to market capitalisation in Asia, but this does not affect or harm the quality of services provided here.
- Furthermore, the SGX has established strategic partnerships with major players globally, including major companies such as Bloomberg and Thomson-Reuters, providing comprehensive market data solutions. It collaborates on an ongoing basis with many other exchanges such as those in Australia, China, and Malaysia to help promote sustainable industry growth and facilitate financial liberalisation throughout South East Asia.
