Yangzijiang To Be First Company to Trade in Yuan on SGX
The Chinese shipbuilder, which debuted on the Singapore exchange in April 2007, will start trading in yuan under the bourse’s dual-currency trading platform on Aug. 5, Singapore Exchange Ltd. said in a statement today.
“This is an exciting and positive development for Singapore as an offshore yuan centre,” Magnus Bocker, Chief Executive Officer of Southeast Asia’s biggest bourse, said in the statement. “It also demonstrates how SGX is contributing to the infrastructure and capabilities required for issuers and investors to tap on opportunities offered by China.”
More companies may want to offer dual currency trading on the Singapore bourse, especially those with China-based operations, said Low Pei Han, an analyst at Oversea-Chinese Banking Corp. There are already 142 Chinese companies listed in Singapore with a total market capitalization of S$26.3 billion ($20.7 billion) as of June 30, according to stock exchange data.
“We deem this move positive for Yangzijiang as it broadens the group’s investor base,” OCBC’s Low said. “This does not change the underlying fundamentals of the company.”
Yangzijiang fell 2.1 percent to 93 Singapore cents as of 11:09 a.m. in Singapore. The benchmark Straits Times Index dropped 1 percent.
To contact the editor responsible for this story: Nick Gentle at email@example.com