Why Singapore Listings Are the New Safe Harbor for Chinese Tech Firms

The U.S.-China trade war has reshaped global capital flows, forcing Chinese tech firms to seek alternatives to American markets. Singapore, with its geopolitical neutrality, tax incentives, and strategic location, has emerged as a critical alternative. For companies like EHang—a leader in urban air mobility (UAM)—a Singapore listing could be the key to unlocking Southeast Asia’s growth while sidestepping U.S. regulatory and tariff risks. Let’s dissect why this shift makes sense, and why investors should pay close attention.

Geopolitical Risk Mitigation: The SGX Advantage

The U.S. Securities and Exchange Commission’s (SEC) crackdown on Chinese firms over audit disputes, coupled with escalating tariffs on tech exports, has created a hostile environment for Chinese companies. Singapore’s Stock Exchange (SGX) offers a refuge. In February 2025, Singapore introduced a 20% tax rebate for primary listings, reducing capital costs for firms. Additionally, SGX’s relaxed listing requirements for tech startups—compared to the NYSE or NASDAQ—make it easier to access liquidity without compromising control.

For EHang, which reported a 178% year-over-year revenue surge in Q1 2024 to RMB61.7 million, a SGX listing could provide the capital needed to scale production of its EH216-S eVTOL aircraft, now certified for mass production by China’s aviation regulator. This aligns with Beijing’s push to expand its “low-altitude economy,” a sector projected to hit ¥1.5 trillion (US$200 billion) by 2030.

Southeast Asia: The Next Growth Frontier

EHang’s partnerships in Japan, the UAE, and Spain demonstrate its global ambitions. But Singapore’s role as a gateway to Southeast Asia’s 680 million consumers—a market expected to grow at 5.2% annually until 2030—is unmatched. By listing in Singapore, EHang could tap into regional investor networks and collaborate with governments like Malaysia and Thailand, which are building UAM infrastructure.

This data query highlights how geopolitical risks have pressured Chinese tech stocks, underscoring the urgency of diversifying listing venues.

Xpeng’s Flying Car Unit: A Blueprint for Success

Xpeng’s decision to spin off its flying car division, Xpeng Air, and seek a Singapore listing in early 2025 offers a blueprint. The move avoided U.S. scrutiny over “dual-use” technologies while positioning Xpeng Air to partner with Singapore’s Urban Air Mobility Council. EHang, which has already secured conditional orders for 100 EH216-S units in China and partnerships in Japan and the UAE, could replicate this strategy.

The Investment Case: Why Act Now?

1. Tax and Regulatory Incentives: Singapore’s reforms, including exemptions for companies contributing to its “Smart Nation” initiative, lower costs and risks.
2. Market Access: Southeast Asia’s $4.5 trillion GDP and urbanization rates make it ideal for UAM adoption.
3. Reduced Tariff Exposure: U.S. tariffs on Chinese drones and advanced batteries now exceed 25%, whereas Singapore’s free trade agreements with ASEAN countries offer duty-free access.

This data query reveals how Singapore is gradually becoming a preferred venue for liquidity, with volumes rising 40% in 2024.

Risks and Considerations

While the benefits are clear, challenges remain. EHang’s Q1 2024 net loss of RMB63.4 million highlights the need for sustained operational cash flow. Investors must also monitor CAAC’s progress in certifying EH216-S for international routes—a prerequisite for scaling.

Conclusion: Pivot to SGX, or Be Left Behind

The writing is on the wall: Chinese tech firms must diversify their capital markets to survive. EHang’s potential SGX listing isn’t just a defensive move—it’s a strategic pivot to a region primed for UAM adoption. For investors seeking exposure to Southeast Asia’s growth while avoiding U.S. tariffs, Singapore-listed firms like EHang are no longer just an option—they’re the new safe harbor.

Act swiftly. The window for capturing this shift is narrowing, and the next bull market in Chinese tech may well be written in Singapore.

Disclosure: This analysis is for informational purposes only. Always conduct your own research or consult a financial advisor before making investment decisions.