The Singapore Exchange (SGX) and the China Securities Regulatory Commission (CSRC) have announced that they will establish a direct listing framework for Chinese companies to list in Singapore.
Under the new arrangement, companies incorporated in China that have obtained the approval of CSRC will be able to seek a listing on the SGX.
Companies that wish to list will be subject to due diligence procedures conducted by both Singaporean and Chinese regulators. The firms will need to comply with all relevant laws and regulations in China, as well as all requirements and regulatory standards of Singapore and the SGX.
Potential issuers will need to file applications with the CSRC and SGX. CSRC will review the applications before granting approval for the issuer’s listing in Singapore. Subject to a further review, SGX will then issue a notice of eligibility-to-list.
The financial statements of the companies that list cannot be presented in accordance with Chinese accounting rules, but have to comply with either Singapore Standards on Auditing, International Standards on Auditing, or the USA’s Generally Accepted Auditing Standards.