THE Hong Kong stock exchange faces increasing competition for listings once an agreement between securities authorities in China and Singapore has been struck by the end of this year.
There are fears of an increasing number of China state-owned companies opting for primary listings in Singapore instead of Hong Kong.
Tianjin Chinese Medicine, which was to be listed in Hong Kong, yesterday confirmed plans to issue shares on the Singapore exchange.
A spokesman said the company was awaiting the release of a memorandum of understanding between the China Securities Regulatory Commission and its Singaporean counterpart allowing the listing of mainland firms. The pharmacy group, specialising in manufacturing and distributing traditional Chinese medicine, was undergoing a restructuring process as part of its listing preparation, he said.
DBS Bank was expected to act as the lead underwriter. A DBS corporate finance source said details of the listing plan would not be finalised until the restructuring was finished.
The group had yet to decide which of its arms would be included under the listing umbrella because there were various subsidiaries engaged in retailing, distribution and manufacturing business.
The memorandum would clarify listing and trading regulations to be followed by mainland firms and investors alike.
