SGX Deepens China Links as Asia’s Markets Move Center Stage
Singapore Exchange (SGX) is tightening its cooperation with Chinese bourses as a rebound in China's equity market draws renewed global interest. For international investors, the partnership signals a widening gateway into Asia's fast-evolving capital markets.
Chinese equities have strengthened this year, reviving confidence and prompting fresh inflows from global funds. The FTSE China A50 Index, the only benchmark giving overseas investors direct access to China's 50 largest companies, has seen rising allocations. This momentum has boosted SGX trading in equities and currency derivatives, with investors from Europe and the US now accounting for more than a third of currency futures activity during non-Asian hours.
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A key feature of SGX's collaboration with the Shanghai Stock Exchange is the ETF connectivity program. Expanded in July 2025, it now covers 10 cross-listed ETFs, providing investors with streamlined exposure to both markets.
The expansion comes as China's ETF market surpassed RMB 5 trillion ($700 billion) in August, a record high, while global ETF assets hit $17.34 trillion, according to ETFGI. Building on this momentum, SGX and SSE plan to launch Asia-focused indexes, with themes such as artificial intelligence and consumption. These could offer ETF issuers new vehicles for capturing the region's growth.
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With nearly 600 companies listed and a market capitalization of $600 billion, SGX is already home to a strong base of China-linked firms. About 20 percent of listed companies are Chinese or generate significant China revenues, spanning industries from manufacturing to the digital economy. The REIT sector also reflects this link, with at least 10 SGX-listed trusts tied to Chinese assets.
SGX has also shortened its IPO process to just six to eight weeks, enhancing its appeal as a listing venue. The exchange has outperformed regional peers this year: the Straits Times Index is up 18 percent, while daily trading value rose 27 percent year-on-year.
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Singapore's efforts are backed by policy. The Monetary Authority of Singapore launched a S$5 billion ($3.9 billion) Equity Market Development Programme in February to broaden participation in local equities, with nearly 20 percent of funds already allocated.
CEO Loh Boon Chye notes that Southeast Asia, the world's fifth-largest economic bloc, is set to become the fourth by 2030. ETFs, with their accessibility and liquidity, are likely to remain a preferred tool for global investors seeking exposure to the region's growth story.
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