Singapore Exchange
Lower Trading Volume in SGX

SGX has been suffering from declines in trading vols for the past few years. Trading vols are about 27% down from pre 2008 financial crisis levels.

Companies have been delisting because of hefty compliance costs or choosing to relist elsewhere for better valuations and liquidity.

SGX has also attracted fewer IPOs because of a perception of high costs and lower valuations + liquidity.

Having said all that, SGX is seeing a turnaround in 2018. I expect the situation to improve with cost cutting measures on the SGX + upcoming linkages to other ASEAN exchanges.

HK Exchange is doing so well because it is seen as the proxy for Greater China. SGX can emulate this success by becoming the proxy for ASEAN.

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