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Singapore Exchange Ltd. (SGX) Heads West

Singapore Exchange Ltd. is making efforts to collaborate and invest in exchanges in the West and Mid-East. Just recently, they opened up offices in Beijing with hopes of fostering “closer working relationships with key stakeholders, including relevant Chinese authorities and SGX-listed companies,” according to the Company. The Chief Executive of SGX, Hsieh Fu Hua, has said he expects the new listings of Chinese companies in Singapore to slow, prompting the desire to look outside of Asia for opportunities.

In efforts to bolster the Asian market, SGX has bought a 5% stake in Bombay Stock Exchange, Ltd. for $47.5 million, which may have prompted the Tokyo Stock Exchange Inc to purchase a 4.99% stake in SGX for $321 million. While these figures may be encouraging, the Asian market is still falling further behind markets in the West and Mid-East, causing some to look elsewhere for opportunity.

Mr. Hsieh feels that the big markets in the West are crucial to anyone wishing to become part of the global market. He also stated that the currently red-hot markets in the Middle East are equally as important. There are high hopes that the collaboration efforts will prove to bring in investment, as well. The exchanges in Asia have been the odd man out during the recent rash of mergers-and-acquisitions, a trend that has been carrying on for a few years now. The biggest reasons for their inability to participate have been staunch regulatory restrictions and because several of the exchanges are not publicly listed.

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