SINGAPORE is unlikely to surpass Hong Kong as the primary source for overseas funding for Chinese enterprises, Frank Wong Kwong-shing, chairman of the Hong Kong Futures Exchange (HKFE), says.
This is despite a memorandum of understanding signed between Singapore and China last week strengthening bilateral financial links.
Mr Wong said the number of Chinese enterprises listed on the Stock Exchange of Hong Kong would continue to exceed the number listed in Singapore.
As of July this year, the HKFE reported 35 China-backed listings in Hong Kong compared to two in Singapore. The 35 Hong Kong issues represented a market capitalisation of US$3 billion.
China's signing of the memorandum with Singapore was part of the country's move to go international, Mr Wong said.
He said the Hong Kong Monetary Authority also had signed many agreements with overseas markets in order to expand the territory's portfolio and increase financial ties.
'It is inevitable [to internationalise] when China needs so much money to develop its infrastructure.