Following the tax incentives announced earlier, in order to boost the Singapore stock market, my country has launched the Equity Market Development Programme (EQDP) with a scale of 5 billion yuan. At the same time, the Singapore Exchange will also speed up and simplify the listing process of enterprises to attract more new stocks to list.

The Securities Market Review Team of the Monetary Authority of Singapore announced the above measures on Friday (February 21). The 5 billion yuan development plan was launched by the HKMA and its subsidiary Financial Sector Development Fund.

Xu Fangda, Vice Chairman of the HKMA, Minister of Transport and Second Minister of Finance, who led the review group, pointed out at a press conference on Friday that the securities market development plan worth 5 billion yuan is to encourage and support asset management companies and focus on investing in Singapore's stock market. .

The HKMA will invest in Singapore's stock market through eligible fund managers. Fund managers cannot invest only in Straits Times index components, they must also have the ability to attract other investors, such as sovereign wealth management funds.

The HKMA will start screening suitable fund management companies within the next few months.

In addition, the government will adjust the Global Investor Program (GIP) under the Singapore Economic Development Agency. Next, applicants who want to establish a single family financial office in my country through this plan must invest at least 50 million yuan of the 200 million yuan asset management scale (AUM) to invest in the stocks of listed companies in Singapore. Previously, the single company under this plan could invest in listed stocks, real estate investment trusts, commercial trusts, funds issued in Singapore, etc., but in the future, only local listed stocks will be limited to locally listed stocks.

The review team also suggested adopting a regulatory stance that is more conducive to corporate listing. To this end, the HKMA will appoint SGX RegCo as a single listing regulator to simplify and speed up the process of listing of enterprises. After simplification, the review process for the company's listing is expected to be six to eight weeks.

The first phase of measures also include tax incentives announced earlier. The government will provide corporate tax rebates and preferential tax rates to companies and fund managers in Singapore, encouraging them to list in Singapore. Fund managers who invest heavily in stocks of listed companies in Singapore can receive tax exemptions.

The second phase of review is expected to be completed by the end of the year

Xu Fangda said: “A journey of a thousand miles begins with a single step. The measures we have introduced are the first step in the development of the local stock market in the new stage. This is a difficult task. Only through cooperation with the industry can we create together. It is a foundation that is conducive to the long-term development of the stock market. The second phase of our working group is expected to be completed by the end of this year.”

The review team's measures in the second phase include how to increase shareholder value, reduce the minimum trading integer of stocks (board lots) to attract more retail investors, and strengthen investors' claims pipelines.