Singapore Tries to Give Its Flagging Stock Market a Kickstart with a Link to the NASDAQ

Singapore's stock market is seeking to boost its appeal by launching a dual-listing bridge with the NASDAQ. The initiative allows firms to list on both exchanges with streamlined processes. The collaboration is intended to attract large-cap firms with international ambitions.

The S$2 billion minimum market capitalization requirement acts as a quality filter for the dual-listing program. This threshold ensures that only firms with strong governance and financial depth are eligible. It also reduces risks for both exchanges.

Recent moves by major corporations highlight the growing appeal of cross-border listings. For instance, Mercury General recently announced a dual listing on NYSE Texas. The move aims to expand its presence in Texas and enhance shareholder value.

Why the Move Happened

Analysts suggest the initiative is designed to position Singapore as a hub for global capital. By linking to the NASDAQ, the SGX can attract firms with strong international exposure. This is especially relevant for companies seeking to expand into Asia.

The dual-listing bridge also supports firms with diverse revenue streams. These companies are likely to have mature financial systems and experienced management teams. They are well-positioned to navigate cross-border regulatory requirements.

How Markets Responded

The recent dual-listing activity by large firms has drawn attention from investors. For example, CK Hutchison is reportedly seeking a $30 billion valuation for its A.S. Watson unit through dual listings in Hong Kong and London. The move could happen as early as mid-2026.

Investor interest in cross-border listings has been growing. The availability of dual-listing options provides companies with greater access to diverse investor bases. This can improve liquidity and visibility.

What Analysts Are Watching

Market participants are closely monitoring how the dual-listing bridge performs. The success of the initiative will depend on the number of quality companies that choose to participate. It will also depend on investor demand for these securities.

Analysts are also watching for any regulatory changes that may affect the dual-listing process. Cross-border listings involve complex compliance issues. Companies must navigate different market rules and disclosure requirements.