Singapore Exchange Limited (SGX), Asia-Pacific's first demutualised and integrated securities and derivatives exchange, will introduce the first China shares index - PrimePartners China Index (PPCI) to attract more China issuers and to change its disadvantage position in competition with its Asian rival - Hong Kong Stock Exchange & Clearing (HKex).
The new index PCCI was formed by selecting 25 companies owned and managed by China entrepreneurs from 88 shares listed in SGX by the end of 2005, according to their market value, exchange measures, industry representativeness and turnover in market etc, reflecting the trend of the shares prices of China companies listed in Singapore. The market value of those companies which were listed in PCCI's component shares is no less than SGD100 million.
According to the sources, some China enterprises such Cosco, Pine Agritech, People's Food etc have been listed in the components shares.
Analysts in sector said the new PCCI aimed at HSI's China-asset enterprises index and China enterprises index, challenging to HKex. Since 2002, China enterprises listed in Singapore increased year-by-year, from 16 shares in same year to 105 by the end of August 2006, the total value reach to SGD 28.4 billion, 6% of the total value of companies listed in SGX. China shares accounted for 15% of total turnover in SGX every day.
Though two exchange offices are always rivals in contesting the China enterprises listing overseas, the SGX didn't make a threat to HKex which has a greater attraction for China companies due to some conditions. At present, there are 350 China enterprises lising in HKex, which turnover accounting for 40% of the total market value. Some leader company such as China Mobile, PetroChina, Sinopec, BOC and China Construction Bank etc list in Hk.