ASEAN Exchanges a step closer to trading interconnectivity

[Nick]

http://info.sgx.com/webcoranncatth.nsf/V...F003ADA49/$file/06142011_ASEAN_Exchanges_a_step_closer_to_trading_interconnectivity.pdf?openelement [SGX Press Release]

Any views ?

[kazukirai]

Personally, I think it's a great thing. The companies listed there serve markets that are much much bigger than ours; and are stronger in industries much more different from SG.

However, the Philippines and Thailand aren't exactly the most politically stable places in the region. That factor will play a huge role in investor sentiments...imagine your businesses impacted by the shutdown of airports by protestors or the likes. Malaysia had their Clob and capital control moment too. Will their governments be committed to keeping their exchanges free of measures that impede free and fair exchange?

What are chances of something like that happening? What are the means of recourse that SG investors have in the event something like that happens? Are the accounting standards and checks in these countries equal to the ones we're used to seeing here (I hesistate to say that we have stricter standards thanks to the shenanigans we've seen in some of the S-chips as well as past examples like Citiraya)

If I can find the answer to these questions (and possibly more), I will be pretty excited. Only thing is that Buddies who love doing scuttlebutt will find it tougher since information may not be in a language we understand and we're physically removed from where the company is based.

[Nick]

Personally, I would welcome moves for our blue chips to dual list into other stock exchanges and same for their blue chips without issuing new shares. It would be exciting to invest in top regional companies for their yield and growth. Countries like Indonesia have a lot of growth potential. Perhaps SGX have finally decided that there is hardly any point in attracting S-Chips to list in Singapore (since few appreciate their business, geographical gap and the poor corporate governance) when instead they could expend their energies in getting top tier companies in the region to come here.

Unfortunately, the some of the few which came here have pretty poor trading volume. Thai Beverage seems to have decent trading volume and their regular investor meetings show they do care about minority investors here. Thailand second largest telco (DTAC) dual listed here but their trading volume is very low. I guess the top minds in SGX will figure out a solution.

The long term goal could be a common stock exchange across the region hmm

(My own thoughts. Pls feel free to point out any errors)

[freedom]

a good way for SGX to make money. traders and brokers can base in Singapore to trade other market, instead of opening office in Thailand & Malaysia.

smart move for SGX.

[redcorolla95]

With POEMS you can already do quite a bit if you want international exposure. No reason to wait.

Singapore
Malaysia
US
Hong Kong
Thailand
Japan
UK
Canada
Korea
Australia
Indonesia

There's an entire community traders, brokers, investors that already does this