Singapore Exchange attracting Japanese companies+

SINGAPORE, Feb. 8 Kyodo -
Japanese companies are showing strong interest to raise funds on the Singapore
bourse, which has emerged as one of the region's most competitive bourses.
A wave of new public listings of Japanese companies is expected this year in
line with the trend of more Japanese companies seeking public listings on other
Asian exchanges to overcome the weak market for corporate fundraising in Japan
and also to ride on the back of Asia's strong economic growth.
''A lot of growth companies are seeking funding outside Japan mainly because
they could not raise money in Japan,'' Tomoyasu Maruyama, a partner at the
international audit firm Deloitte Touche Tohmatsu LLC, told Kyodo News.
''Now Asia is one of the growth engines and the market for them to grow their
business. To expand their business in Asia, it's better for them to raise funds
in Asia,'' Maruyama said.
Singapore Exchange is seen as particularly attractive because of the aggressive
measures it has taken to boost its competitiveness and also Singapore's
position as a launching pad to the markets in Southeast Asia and India.
Maruyama said about 10 Japanese companies are now in the process of seeking
listings on Singapore Exchange.
They include Japanese restaurant chains planning to expand their business in
the region to take advantage of the popularity of Japanese food in Southeast
Asia, and also Japanese health care companies lured by the strong growth of
medical tourism in the region.
Singapore Exchange has been marketing itself aggressively as an international
bourse.
Today, about 40 percent of the 782 companies listed on the exchange are from
overseas, and of this, nearly 70 percent are from mainland China, Hong Kong and
Taiwan. According to Singapore Exchange, only 10 Japanese companies are now
listed on the exchange.
Analysts say due to its strategic location and economic linkages, Singapore is
a strong choice for companies that are eyeing the Southeast Asian and Indian
markets. In comparison, the Hong Kong stock market tends to be seen as a
gateway to mainland China, while the South Korean market is more domestically
driven.
To boost its competitiveness, Singapore Exchange announced in October a merger
with the Australian stock exchange to create the world's fifth-largest listed
exchange group with combined market capitalization of more than US$12 billion.
Last month, Singapore Exchange announced it will extend trading from 9 a.m. to
5 p.m. from March 1 so that its trading hours will overlap more with those of
other Asian exchanges and introduce cutting-edge technology to its trading
system.
''Asian markets have been popular in Japan since 2008,'' said Ernest Kan, a
partner at Deloitte Singapore & Southeast Asia, whose company attracted more
than 50 top officials from Japanese firms to a seminar it organized in
Singapore in January after two roadshows in Tokyo last year.
==Kyodo
2011-02-08 23:33:41


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