Latest news with #SingaporeExchange
Business Times
6 hours ago
- Business
- Business Times
SIA chairman Peter Seah redesignated as non-independent director after AGM
[SINGAPORE] National carrier Singapore Airlines' (SIA) chairman Peter Seah was redesignated as a non-independent director at the conclusion of its uneventful 53rd annual general meeting (AGM) on Friday (Jul 25). The chairman's re-election was one of the nine resolutions tabled for the proceedings at Marina Bay Sands Expo and Convention Centre. It garnered the lowest votes among all the resolutions, at 87.04 per cent, in favour of retaining him. He was first appointed to the board as director in September 2015, and his role was elevated to chairman in January 2017. Thus, Seah was redesignated as non-independent in accordance with the Singapore Exchange rule which stipulates that a director of a listed company will not be independent If he or she has served for an aggregate period of more than nine years. Presently, Seah also sits on the board of directors at DBS . A career banker for more than 30 years previously, the 78-year-old was with the former Overseas Union Bank between 1977 and 2001, retiring as vice-chairman and chief executive officer. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The hundreds of shareholders present at the SIA AGM, meanwhile, did not have a single question for the flag carrier's board and senior management. They cleared all nine resolutions, including the proposed final dividend of S$0.30 per share for FY2025 ended March, at the proceedings, which lasted about an hour. The group posted a record full-year net profit of S$2.8 billion for FY2025 because of a one-off non-cash accounting gain of S$1.1 billion from the Air India-Vistara merger. The corporate action in 2024 led to SIA holding a 25.1 per cent share in the merged entity. Vistara was a 49 per cent associated company of SIA, before the merger took place. The gain aside, earnings for FY2025 would have been 37.2 per cent lower at S$1.7 billion for SIA. The counter rose 0.3 per cent or S$0.02 to close on Friday at S$7.57.
Independent Singapore
7 hours ago
- Business
- Independent Singapore
Shifting tides: Lion City lures Hong Kong investors
SINGAPORE: The financial scene in Singapore is changing as more and more Hong Kong investors see the city-state as a refuge from regional unpredictability. The Singapore Exchange (SGX) is capitalising on this trend by putting significant market reforms and initiatives into place. A recent DBS Treasures Affluent Investor Survey, released in July 2025, found that 27% of affluent investors from Hong Kong and mainland China are now thinking about diversifying their portfolios by purchasing Singaporean stocks. The political stability of Singapore, sometimes referred to as the 'Switzerland of the East,' and its growing significance as a gateway to Southeast Asian markets are significant considerations. The city-state has put in place alluring incentives in an attempt to attract companies and investment. The central bank of Singapore announced a 20% tax refund for primary listings in February 2025 as one such measure. Singapore is making a strong case for itself with tax incentives and business-friendly policies that are drawing interest from regional investors. In a media release, Amy Kwan, Head of Business Planning, Customer Segment and Ecosystem, Consumer Banking Group & Wealth Management, DBS Bank (Hong Kong) Limited, said, 'Affluent investors are demonstrating strong confidence, resilience and adaptability when navigating a complex economic environment. They are seeking global investment opportunities to diversify their investment portfolios. 'The findings reaffirm that communications with trust relationship managers for a holistic investment advice is essential and important, especially among those with higher investable assets, despite many already leveraging digital tools when making investment decisions. Affluent investors are also investing beyond the borders.' The strategy used by SGX goes beyond standard market stimulation. Singapore's central bank's $5 billion Equity Market Development Programme (EQDP) run by its central bank is a concerted attempt to revitalise the stock market from a number of perspectives. Important tactics the central bank has announced include: Drawing in Secondary Listings: Singapore Depository Receipts (SDR) are being introduced by SGX to increase trading options and target foreign companies for listings in Singapore. Strengthened Research Projects: With an emphasis on cutting-edge industries like artificial intelligence, healthcare, and novel business models, the exchange is developing comprehensive research coverage for possible IPO candidates. Education for Investors: More information about new investment opportunities and attention to lesser-known stocks are being provided by proactive efforts. See also Singapore shares open lower on Thursday—STI dropped 0.4% Thanks to strong earnings results from important Temasek portfolio companies like DBS Group Holdings and Singtel, the Straits Times Index (STI) has also reached all-time highs. There are still issues, though, because roughly 85% of trading turnover is made up of the top 30 STI component stocks. The ongoing trade tensions between the United States and China have increased Hong Kong investors' interest in Singapore. At least five Chinese or Hong Kong-based businesses are getting ready to make dual listings or initial public offerings (IPOs) on the SGX within the next 18 months, indicating growing confidence in Singapore's market potential. With 63% of investors prioritising tech-driven opportunities, the technology and innovation sectors are especially alluring. However, SGX's head of equities, Ng Yao Loong, stresses a practical approach. In an interview with The Edge Singapore, he shared: 'They are all well-meaning, but we know that these measures have to be self-reinforcing, such that the liquidity flywheel can start turning. Liquidity begets liquidity on its own, but sometimes it is quite difficult.' The SGX aims to create a self-reinforcing liquidity ecosystem. This will pull in more investment through transparency, equity, and strategic partnerships. It won't directly challenge Hong Kong's historical dominance in share sales. Rather, Singapore seeks to establish a place for stable, income-producing companies that cater to Southeast Asia. The city-state is working to establish itself as a strong, forward-thinking finance centre in light of the continuous global unpredictability. Only the upcoming months will see whether these initiatives can result in a long-lasting shift in the local investment climate.
Business Times
11 hours ago
- Business
- Business Times
China's 1.2 trillion yuan dam project lifts metals markets, but isn't a quick fix for glut
[SINGAPORE] China's launch of a 1.2 trillion yuan (S$218.5 billion) mega-dam project in Tibet has energised metal markets, though analysts warn that its long timeline and China's construction downturn would limit the impact of immediate demand. Ferrous markets rallied sharply this week following the Saturday (Jul 19) groundbreaking ceremony attended by Chinese Premier Li Qiang. Iron ore futures for October delivery on the Singapore Exchange surged as much as 4.9 per cent this week, and Shanghai steel futures jumped almost 4 per cent on Thursday from pre-announcement levels. As the world's largest and most costly hydropower dam, the output of the Yarlung Tsangpo River project would treble that of the Three Gorges Dam and generate an estimated 300 trillion watt-hours of electricity annually, supporting power demand in Tibet and the rest of China. The electricity generated each year would be more than five times the amount of electricity consumed in Singapore in 2024. According to estimates by Chinese ferrous markets trade monitor LGMI Steel, the dam is expected to drive six million tonnes of steel consumption – far surpassing the Three Gorges Dam's steel usage of 70,000 tonnes – due to the Tibetan Plateau's complex landscape and harsher climate conditions requiring greater steel intensity. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Macquarie Group's commodities strategist Florence Sun estimated that demand for steel could be around three to five million tonnes, featuring a mix of rebar and various special steels, given the unique geographical environment. She also noted that the cost of the new dam would be 4.5 times that of the Three Gorges Dam. While the project will generate substantial demand for ferrous metals such as iron ore and steel, its five- to seven-year construction timeline on the Yarlung Zangbo River means the impact will be gradual rather than immediate, given staggered procurement over the build period, noted Edward Meir, senior metals analyst at Marex. He expects steel and cement to see the biggest demand boost from the project, with modest growth of copper demand for power transmission. Meanwhile, a struggling construction sector continues to drag on ferrous metal demand, said Sabrin Chowdhury, head of commodities at BMI. 'More such projects will be necessary to bring about a sustained rise in metals demand,' she noted. Similarly, in a note on Tuesday, Citi Research highlighted the long construction timeline and limited front-loaded demand, with the usage of metal to be spread over many years. However, the project still reflects China's medium to long-term plans for large-scale, long-distance power transmission infrastructure. 'Although precise copper and aluminium consumption from the associated transmission lines remains unclear, ultra-high voltage corridors, especially aluminium-intensive ones, will be needed to deliver power to eastern and southern China,' wrote the team. Power-grid related metals would thus see continued demand growth over the coming years, noted the team. 'Anti-involution' (fan nei juan) rhetoric Beyond the mega-hydropower project, the recent ferrous complex rally has been fuelled in part by China's 'anti-involution' campaign targeting industrial overcapacity. Over the past fortnight, iron ore, coking coal and coke all posted gains as markets anticipated supply-side reforms. Citi Research wrote in a Jul 15 note: 'The anti-involution campaign aims to break the cycle of destructive price wars and chronic overcapacity that have plagued Chinese industry profitability.' This policy push has drawn comparisons to the 2016-2017 supply reforms that sparked a historic iron ore rally. China's ferrous complex has been struggling with a persistent supply-demand imbalance, particularly as property sector weakness continues to weigh on demand for construction materials, while supply expands amid damaging price wars. With production capacity still outstripping demand, traders appear to be pricing in expectations that Beijing will force meaningful capacity rationalisation. However, the research team does not expect a repeat of the 2016-2017 playbook, given different fundamentals. 'We see the current rally in the steelmaking ingredient as unsustainable and short-lived.' China's policymakers have been advocating a more measured approach to urban planning and upgrades, which are expected to be less steel-intensive than the full demolitions and property upcycles that spurred the previous ferrous rally. The 'anti-involution' rhetoric has been emphasised directly by China's top leaders, underscoring the country's urgent need to break out of the deflationary cycle. In a meeting chaired by President Xi Jinping on Jul 1, the Central Finance and Economic Affairs Commission said Beijing needed to 'guide enterprises to improve product quality and promote the orderly exit of outdated production capacity'.
Business Times
13 hours ago
- Business
- Business Times
China's 1.2 trillion yuan mega-dam project lifts metals markets, but not a quick fix for glut
[SINGAPORE] China's launch of a 1.2 trillion yuan (S$218.5 billion) mega-dam project in Tibet has energised metal markets, though analysts warn its protracted timeline and China's construction downturn will limit immediate demand impact. Ferrous markets rallied sharply this week following Saturday's (Jul 19) groundbreaking ceremony, attended by Chinese Premier Li Qiang. Iron ore futures for October delivery on the Singapore Exchange surged as much as 4.9 per cent this week, while Shanghai steel futures jumped almost 4 per cent on Thursday, versus pre-announcement levels. As the world's largest and most costly hydropower dam, the Yarlung Tsangpo River project's output will treble that of the Three Gorges Dam and generate an estimated 300 trillion watt-hours of electricity annually, supporting power demand in Tibet and the rest of China. The annual electricity generation would be equal to more than five times the amount of electricity consumed by Singapore in 2024. According to estimates by Chinese ferrous markets trade monitor LGMI Steel, the dam is expected to drive six million tonnes of steel consumption – far surpassing the Three Gorges Dam's steel usage of 70,000 tonnes – due to the complex Tibetan Plateau landscape and harsher climate conditions that require greater steel intensity. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Macquarie Group's commodities strategist Florence Sun estimated that steel demand could be around three to five million tonnes, featuring a mix of rebar and various special steels, given the unique geographical environment. She highlighted that the cost of the new dam would be 4.5 times that of the Three Gorges Dam. While the project will generate substantial demand for ferrous metals such as iron ore and steel, its five-to-seven-year construction timeline on the Yarlung Zangbo River means the impact will be gradual rather than immediate, given staggered procurement over the build period, noted Edward Meir, senior metals analyst at Marex. He expects steel and cement to see the biggest demand boost from the project, with modest growth of copper demand for power transmission. Meanwhile, a struggling construction sector continues to drag on ferrous metal demand, said Sabrin Chowdhury, head of commodities at BMI. 'More such projects will be necessary to bring about a sustained rise in metals demand going forward,' she noted. Similarly, in a note on Tuesday, Citi Research highlighted the long construction timeline and limited front-loaded demand, with metal usage to be spread across many years. However, the project still reflects China's medium to long-term plans for large-scale, long-distance power transmission infrastructure. 'Although precise copper and aluminium consumption from the associated transmission lines remains unclear, ultra-high voltage corridors, especially aluminium-intensive, will be needed to deliver power to eastern and southern China,' wrote the team. Power-grid related metals would thus see continued demand growth over the coming years, noted the team. 'Anti-involution' (fan nei juan) rhetoric Beyond the mega-hydropower project, the recent ferrous complex rally has been fuelled in part by China's 'anti-involution' campaign targeting industrial overcapacity. Over the past fortnight, iron ore, coking coal and coke have all posted gains as markets anticipate supply-side reforms. Citi Research explained in a Jul 15 note: 'The anti-involution campaign aims to break the cycle of destructive price wars and chronic overcapacity that have plagued Chinese industry profitability.' This policy push has drawn comparisons to the 2016-2017 supply reforms that sparked a historic iron ore rally. China's ferrous complex has been struggling with a persistent supply-demand imbalance, particularly as property sector weakness continues to weigh on demand for construction materials, while supply expands amid damaging price wars. With production capacity still outstripping demand, traders appear to be pricing in expectations that Beijing will force meaningful capacity rationalisation. However, the research team does not expect a repeat of the 2016-2017 playbook, given different fundamentals. 'We see the current rally in the steelmaking ingredient as unsustainable and short lived.' China's policymakers have been advocating a more measured approach to urban planning and upgrades, which are expected to be less steel-intensive than the full demolitions and property upcycles that spurred the previous ferrous rally. The 'anti-involution' rhetoric has been emphasised directly by China's top leaders, underscoring the country's urgent need to break out of the deflationary cycle. In a meeting chaired by President Xi Jinping on Jul 1, the Central Finance and Economic Affairs Commission said Beijing needed to 'guide enterprises to improve product quality and promote the orderly exit of outdated production capacity'.
Business Recorder
2 days ago
- Business
- Business Recorder
Iron ore slides on China property weakness
SINGAPORE: Iron ore futures fell on Wednesday, weighed down by ongoing weakness in China's property sector, which overshadowed support from recent government stimulus and infrastructure plans. The most-traded September iron ore contract on China's Dalian Commodity Exchange (DCE) traded 0.49% lower at 813 yuan ($113.49) a metric ton, as of 0311 GMT. The benchmark August iron ore on the Singapore Exchange was 0.61% lower at $104.7 a ton. China's outstanding property loans rose to a two-year high in June, following a series of property measures aimed at stabilising the sector. Despite ongoing policy support, the property downturn continues to weigh on the economy. Property investment slumped in the first half of the year, while new home prices in June posted their steepest monthly decline in eight months. The announcement of a $170 billion hydropower project in Tibet could provide a massive boost to the struggling concrete and steel sectors, said analysts from ANZ. The project's costs are projected to exceed those of the Three Gorges Dam by more than four times. Meanwhile, Japan has launched an anti-dumping investigation into stainless steel sheets imported from China and Taiwan, after data showed that these imports were being sold in Japan at prices 20%-50% lower than in China. This has resulted in Japanese steelmakers struggling to set prices that reflect rising costs, leading to profit declines. Other steelmaking ingredients on the DCE jumped, with coking coal and coke up 9.24% and 2.22%, respectively. Coking coal prices remained elevated on rumours of potential government inspections that could lead to supply disruptions, alongside high demand from the hydropower project. Steel benchmarks on the Shanghai Futures Exchange mostly lost ground. Hot-rolled coil dipped 0.15%, wire rod fell 2.48%, stainless steel edged up 0.04%, and rebar traded flat.
