With its new pact with Nasdaq Inc., Singapore Exchange Ltd. has thrown its hat into the ring to attract listings from the world’s hottest sector. But skepticism abounds over whether this strategy will succeed.
The Singapore exchange on Tuesday said it will extend its partnership with the tech-focused bourse to make documentation easier for firms seeking a second listing in the city-state. The deal heightens rivalry with Hong Kong as the north Asia hub launches a tech index for its 30 biggest stocks, analysts said. SGX shares fell 2.3% in the trading session following the release.
“It remains to be seen if it will be a game-changer,” said Rui Wen Lim, an analyst at DBS Bank Ltd. There are several considerations, such as target investor base, costs and valuations, she said.