Singapore Exchange (SGX)

[CityFarmer]

Wow. What the comments for SGX, especially on the MTP 

Firstly, the MTP had been consulted with public early 2014, not as perceived as "closed-door" operation. Its effectiveness is controversial, but based on MAS/SGX paper, majority of the respondents were supportive. I chose to believe the MAS/SGX official doc, rather than any anonymous sources. Based on the limited personal experience, the "opposing" views are mostly from brokerage sector, which is expected.

Source: 
http://www.mas.gov.sg/~/media/MAS/News%2...ctices.pdf

Next, IMO, public consultation isn't a decision making process by itself, but a feedback loop. It is a platform, for public to voice-up, and be officially recorded. It is flaw to assume, laughter voice will win. The authority is obliged to response or rationalize on major feedback, either agree or disagree, rather than ignoring them.

Last and not least, on the "wayang". I used to hear election is "wayang" if the result is expected. The "wayang" will become not a "wayang" if the result is uncertain due to whatever reason(s)? I am seriously skeptical on the statement.

(not vested, but like to comment base on facts, rather than perceptions)

[weijian]

reviewing a 13-year-old rule requiring listed companies to provide quarterly financial reports in light of moves by other regulatory jurisdictions including the U.K. to drop the practice.

One thing I really love to see in the quarterly report are shareholder's holding and also SGX please have shareholders declare who their shares are with especially those in nominees acct!!!!  Really don't know what these banks/houses are doing with those shares.  Everything is in the dark.

Why SGX don't want to take the lead in requesting for more transparencies from the company as example to show to the world?  I thought the world like to study the success of SG but why our SGX is only capable of studying and following (blindly) other countries?

I almost flipped off the chair when I read this. I think there are 2 misconceptions in this statement:

(1) Equating SG to SGX
(2) 3rd world countries like to study the success of SG...and the success of SG...<<drum roll>> is its pragmatism to study what works/doesn't work at other countries first before implementation on its own.

The Edge article actually mentions it is "reviewing a 13-year-old rule requiring listed companies to provide quarterly financial reports in light of moves by other regulatory jurisdictions including the U.K. to drop the practice".....sounds very similar like SG Inc's pragmatism here

(vested)

[CityFarmer]

The link is for convenience. The LNG is under-pressured with the current lower oil price. The HH LNG spot price, isn't moved too much, and staying around average $3 per mil BTU, but the Asia price has dropped from previous low tenth $ per mil BTU, to recent price of slightly more than $7 per mil BTU...

https://www.lngworldnews.com/platts-augu...sia-slide/

http://www.eia.gov/naturalgas/

(not vested)

SGX seeks to break LNG’s price link to oil with Singapore SLInG

SINGAPORE (Jan 25): Singapore Exchange wants to break the liquefied natural gas market’s reliance on oil as a pricing peg as the city-state seeks to solidify its role as Asia’s energy trading hub.

The exchange, known as SGX ( Valuation: 2.10, Fundamental: 2.30), plans to launch on Monday futures and swaps linked to its index of spot prices for LNG traded in Asia. Final settlement for the contracts will be determined by average weekly assessments gathered from producers, consumers and traders in the physical LNG market.
...
http://www.theedgemarkets.com/sg/article...pore-sling

[csl123]

The link is for convenience. The link is under-pressured with the current lower oil price. The HH LNG spot price, isn't moved too much, and staying around average $3 per mil BTU, but the Asia price has dropped from previous low tenth $ per mil BTU, to recent price of slightly more than $7 per mil BTU...

https://www.lngworldnews.com/platts-augu...sia-slide/

http://www.eia.gov/naturalgas/

(not vested)

SGX seeks to break LNG’s price link to oil with Singapore SLInG

SINGAPORE (Jan 25): Singapore Exchange wants to break the liquefied natural gas market’s reliance on oil as a pricing peg as the city-state seeks to solidify its role as Asia’s energy trading hub.

The exchange, known as SGX ( Valuation: 2.10, Fundamental: 2.30), plans to launch on Monday futures and swaps linked to its index of spot prices for LNG traded in Asia. Final settlement for the contracts will be determined by average weekly assessments gathered from producers, consumers and traders in the physical LNG market.
...
http://www.theedgemarkets.com/sg/article...apore-slin

The drop in LNG prices is due to
1) An over supply of natural gas and not enough demand growth. (i.e in USA)
2) China cutting prices to shore up demand and growth.

LNG contracts long term (10-years) contract with little liquidity. Some contracts are negotiated before LNG plants are even built. There are only a few big players in LNG - Japan, Korea,China and India. None of them will trade in Singapore.  Overall, I think SGX is making another strategic mistake. How much transactions will happen in the world market? How many transactions will happen in Singapore?

[egghead]

Let's not be too quick to dismiss their effort.  Below an old article on the trend of LNG spot market.

Introduction

The LNG spot and short-term market has increased exponentially over the last 10 years and now represents 20 per cent of the total global market for LNG. The total volume of LNG traded globally reached 223.8 million tonnes per annum. According to a recent paper published by Poten & Partners, short-term LNG trade volumes are projected to increase at an average rate of 11 per cent per annum for the period up to 2015. This growth rate is higher than the total growth rate for the LNG market, which British Petroleum estimates will be 7 per cent per annum; thus the proportion of short-term LNG trades is set to grow.

Key players

The purchase of spot cargoes in the last couple of years was mostly by Northwest Europe (in particular, the UK) and Asian countries such as Japan, Korea, Taiwan and China. Japan has been scooping up large quantities of LNG in 2011 for power generation, after the Fukushima earthquake paralyzed several of its nuclear power plants. Korea, requiring cargoes mainly for heating during winter months, has been a major participant in the short-term and spot market. Taiwan and China are catching up. Although China’s activities in the spot cargo trade have been noticeable in recent years, further growth is likely to be limited due to restrictions in access to terminal and pipeline facilities in China, its inability to pass on the market price to the heavily regulated domestic gas market, and recent hikes in shipping costs.

In terms of LNG suppliers, in addition to the traditional resource-back suppliers such as Qatar, Australia, Indonesia, Trinidad and Nigeria, increasing numbers of multi-national oil companies, national oil companies and investment banks are setting up trading houses in major trading hubs such as London, Houston and Singapore to service LNG spot cargo customers from Europe and Asia. The prospect of East Africa (Mozambique and Tanzania) becoming LNG exporting nations has attracted attention in the market. The rise of East Africa as LNG exporting nations will in no doubt present a welcome alternative for LNG buyers.

....

Full article here

[CityFarmer]

Yes, long-term (and oil-linked) contracts with restriction clauses, was the norm. Asia buyers have paid more than elsewhere due to that. With the advance of technologies e.g. liquefied gas, and an Asian hub, the market will shift, and is shifting to a more flexibility, transparency and lower prices spot market.

Egghead has provided a good article on that.

[cyclone]

A first step toward Singapore-Taiwan Connect ?

TWSE and SGX sign Strategic Partnership Agreement

27 January 2016.
Taiwan Stock Exchange (TWSE) and Singapore Exchange (SGX) today announced the establishment of a strategic partnership, where a subsidiary of TWSE, Global Link Securities Co. Ltd, will join SGX as a remote trading member, a significant first step towards wider partnership between the two exchanges.
The agreement will allow TWSE member brokers to directly trade SGX-listed securities, thus making such international trades more efficient and cost effective for Taiwan investors. Trading of Singapore listed securities through Global Link is expected to go live in second quarter of 2016.

[CityFarmer]

What is likely the price tag?

(not vested)

SGX submits non-binding bid to buy The Baltic Exchange

SINGAPORE — The Singapore Exchange (SGX) has submitted a non-binding bid for the acquisition of global shipping market hub The Baltic Exchange, it announced on Friday (Feb 26).

In a statement, SGX said that as “discussions are still preliminary, there is no certainty or assurance that the possible transaction will materialise or that any definitive or binding agreement will result from such discussions”.
...
http://www.todayonline.com/business/sgx-...c-exchange

[CityFarmer]

A good news to OPMI?

(not vested)

SGX proposes introducing 10% allocation of Mainboard IPO shares
for retail investors

Singapore Exchange (SGX) is proposing that Mainboard companies allocate to retail investors a
minimum 10% of shares in their initial public offers (IPOs), up to a maximum of S$100 million.
This is the second consultation on the introduction of a mandated minimum IPO allocation to retail
investors. The first consultation in 2012 proposed a 5% retail allocation
...
http://infopub.sgx.com/FileOpen/20160226...eID=391331

[fundamentalman]

The coming 1st S-Chip listing, under a newer framework. Will investor accept the "newer" S-Chip?

Jiangxi Jiangling Chassis to seek Mainboard IPO

SINGAPORE (Aug 12): Jiangxi Jiangling Chassis Co., a China-based manufacturer of car parts, has lodged its preliminary prospectus for a planned listing on the SGX Mainboard.

The company is the first seeking listing under the direct listing framework that was established between Singapore and China back in November 2013. Previous China-based companies listed in Singapore were structured in such a way that they are subsidiaries of entities incorporated in offshore regimes like British Virgin Islands.

This state-owned enterprise, based in Jiangxi province, is in turn a subsidiary of Jiangling Motors Co Group (JMCG), described as the largest mid- to high-end light automobile manufacturer in the province. JMCG is also the largest customer of Jiangxi Jiangling Chassis Co.

Besides its parent company, Jiangxi Jiangling Chassis also supplies its products to both domestic and overseas customers such as Zhengzhou Nissan, Beiqi Foton, Dongfeng Auto and Xiamen King Long, as well as Japan’s Isuzu Motors, Taiwan’s China Motor Corporation and Turkey’s Karsan.

For FY14, the company posted earnings of RMB104.5 million ($22.8 million), up from RMB77.6 million in FY13. Revenue in the same period was RMB1.4 billion, up from RMB1.16 billion. In the most recent 1Q15, the company’s net profit was RMB21.1 million on revenue of RMB350 million.

The company wants to raise funds to expand its production facilities. Specifically, it is planning an RMB260 million investment to build a new 23,000 sqm facility that will help increase its annual production capacity from 600,000 sets of axles to one million sets.

For the IPO, which is arranged by China International Capital Corporation (Singapore), the company plans to offer nearly 18.3 million new shares.
http://www.theedgemarkets.com/sg/article...nboard-ipo

it is state owned, and a subsidiary of a big company, so I guess more acceptable