<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR>Set high benchmarks for SGX and its new chief
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->I REFER to the report, 'New SGX chief sees huge growth in Asia' (July 31).
High compensation comes with high expectations.
While the new Singapore Exchange (SGX) chief executive Magnus Bocker's previous accomplishments in the industry speak volumes, it is not a guaranteed success formula when applied to SGX.
I think certain benchmarks should be predetermined and considered.
Singapore and Hong Kong compete in more ways than one, especially in the financial industry. In the past few years, the Hong Kong Stock Exchange (HKSE) has been successful in attracting China companies seeking offshore listing to Hong Kong to raise capital via initial public offers. These high-profile companies that are eventually listed on the HKSE have substantial market capitalisation, such as Alibaba.com and BBMG.
Singapore pales in comparison in this respect.
Most of the China companies that eventually seek listing on the SGX are either small in terms of market capitalisation or are those that are unable to meet the stringent listing requirement set by the HKSE.
The profile of the SGX in the global financial industry needs to be elevated, at least to that of the HKSE.
It is a fact that many foreign fund managers look to HKSE-listed companies to gain exposure to Asia equities but the SGX is neglected. With the likes of Shanghai and Shenzhen market indices slowly gaining international recognition, the SGX needs to make a pre-emptive move and stay ahead of the game.
Accounting and due diligence standards applied to companies seeking listing on the SGX need to be re-examined.
The SGX needs to protect investors (individual and institutional) and should not tolerate companies with sub-standard financials, poor auditing processes and unacceptable risk-management policies.
In fact, the SGX should insist that only high-standard companies with good corporate governance are allowed to be listed.
Problems such as what happened to China Aviation Oil a few years ago, and a few recent S-chip counters that had accounting and cash-flow problems, should be pre-empted and continuously monitored.
Investor confidence is paramount. Otherwise, investors (individual and institutional) will avoid Singapore.
Harry Ng
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->I REFER to the report, 'New SGX chief sees huge growth in Asia' (July 31).
High compensation comes with high expectations.
While the new Singapore Exchange (SGX) chief executive Magnus Bocker's previous accomplishments in the industry speak volumes, it is not a guaranteed success formula when applied to SGX.
I think certain benchmarks should be predetermined and considered.
Singapore and Hong Kong compete in more ways than one, especially in the financial industry. In the past few years, the Hong Kong Stock Exchange (HKSE) has been successful in attracting China companies seeking offshore listing to Hong Kong to raise capital via initial public offers. These high-profile companies that are eventually listed on the HKSE have substantial market capitalisation, such as Alibaba.com and BBMG.
Singapore pales in comparison in this respect.
Most of the China companies that eventually seek listing on the SGX are either small in terms of market capitalisation or are those that are unable to meet the stringent listing requirement set by the HKSE.
The profile of the SGX in the global financial industry needs to be elevated, at least to that of the HKSE.
It is a fact that many foreign fund managers look to HKSE-listed companies to gain exposure to Asia equities but the SGX is neglected. With the likes of Shanghai and Shenzhen market indices slowly gaining international recognition, the SGX needs to make a pre-emptive move and stay ahead of the game.
Accounting and due diligence standards applied to companies seeking listing on the SGX need to be re-examined.
The SGX needs to protect investors (individual and institutional) and should not tolerate companies with sub-standard financials, poor auditing processes and unacceptable risk-management policies.
In fact, the SGX should insist that only high-standard companies with good corporate governance are allowed to be listed.
Problems such as what happened to China Aviation Oil a few years ago, and a few recent S-chip counters that had accounting and cash-flow problems, should be pre-empted and continuously monitored.
Investor confidence is paramount. Otherwise, investors (individual and institutional) will avoid Singapore.
Harry Ng
