S'pore’s push to modernize listing rules gain urgency amid China’s rising wave of failed IPOs

By Marcel Thee

Singapore’s move to modernize its listing rules and strengthen its equities market proves to be a significant attempt to attract more issuers as its Asian counterparts faces weakening IPO ambitions, particularly in Mainland China where numerous firms failed to go public this year.

 The Monetary Authority of Singapore (MAS) and Singapore Exchange Regulation (SGX RegCo) are simplifying listing rules as a means of making Singapore a more attractive location for such listings. They are moving toward a disclosure-based system and have reportedly launched a S$5 billion plan to improve market liquidity and attract new listings.

 The plan includes incentives for market makers, more research coverage for mid-cap companies, and a greater emphasis on disclosure-based regulation to speed up IPO timelines.

 Singapore’s Minister for National Development and MAS deputy chairman Chee Hong Tat said the city-state plans to work on strengthening the foundations and the elements of its equities market.

 “We want to try and address different aspects of the market that can have a positive impact on the overall attractiveness and competitiveness,” Chee said back in February, then as Second Minister for Finance.

 This attempt has been hailed by experts as a refreshing step and makes the city-state a more prominent market in the Asian region.

 “Singapore’s efforts to simplify listing requirements and enhance liquidity make it notably more attractive than a year ago,” said Roshan Raj, Partner at Redseer Strategy Consultants. “This development should push regional stock exchanges to raise their standards and make local listings more compelling for privately held companies.”

 Singapore’s attempt also showed an urgency among Asian countries to be quick on their feet amidst a weakening market, especially as Mainland Chinese companies confront a tougher environment at home.

 A handful of Chinese firms in the tech industry have lately failed their initial public offerings (IPOs), a result of a combination of market volatility, cautious investors, and changing regulatory expectations.

 Since earlier this year, the rate of new company listings in Mainland China has slowed down significantly. Data by Yicai Global shows 45 companies have had their IPO applications terminated by China’s securities regulator in the first quarter alone.

 “The bar for public-market listing has gone up in the last few years,” Raj of Redseer assessed. “Concurrently, higher global interest rates, continuing geopolitical risk and general aversion to public-market investing are deterring companies from going public.”

 Well-known names in the tech industry are also not immune from this climate, such as Xiamen Hithium Energy Storage Technology Co. Ltd.

 Filing for a Hong Kong listing in 2025, Hithium’s IPO application lapsed by the end of September, its second listing failed attempt. First becoming profitable in 2024, regulators said its profit margin was not large enough to ensure longer-term solvency.

 The government subsidies it received exceeded profit, meaning that without Beijing’s continued support, regulators feared Hithium might remain an unprofitable business. This came from regulators’ probe into concerns as specific as receivables turnover days, which stood at 227.9 days in the first half of 2025.

 Known for its large-scale lithium battery systems, Hithium is considered one of China’s most promising new energy companies. Despite its significant international clients and regional subsidiary operation in Singapore, Hithium Global Pte. Ltd. the firm has primarily relied on domestic investment from Beijing.

 “Battery manufacturers and their customers will have to navigate these new market conditions as access to critical minerals becomes more challenging and the cost of other battery components rise,” said Jeremy Furr, Senior Vice President of Strategic Sourcing at Stryten Energy.