Singapore has always been a bridgehead for Chinese companies expanding overseas. This Southeast Asian country, about the size of a Chinese county, continuously "receives" Chinese enterprises:

In 2012, Haidilao opened its first overseas store in Singapore; in 2018, HEYTEA opened its first overseas store in Singapore; in 2019, Yunhaiyao also landed its first overseas outlet in Singapore; ... In August this year, Baxiang Tea opened three stores in Singapore simultaneously; even NIO, ZEEKR, and other new energy vehicle companies have recently entered Singapore. According to Singapore's Business Times, as of the end of June this year, 32 Chinese F&B brands have entered Singapore, operating a total of 184 outlets; among these 32 brands, 90% established their roots in Singapore during the pandemic. Perhaps this is an extremely conservative figure. Over the past decade, almost every Chinese consumer company expanding overseas has targeted Singapore, this unique market. Many brands opened their first stores in Singapore and subsequently expanded to other Southeast Asian countries. Even from Southeast Asia to the world. After "absorbing" Chinese consumer companies for more than a decade, is Singapore's F&B and other consumer markets saturated? Are there still new opportunities for Chinese companies to expand overseas to Singapore? What assistance will Singapore's capital market provide for Chinese companies expanding overseas? These are questions that Chinese companies are eager to answer before venturing into Singapore.

On August 28, Xiaguangshe held a new session of Xiaguang Talk, inviting three locals who have lived and worked in Singapore for over 20 years to share their perspectives on Singapore's consumer and capital markets. Xie Caihan, Head of Capital Markets, Greater China, Singapore Exchange. Joined the Singapore Exchange Group in 2004 and currently serves as Head of Capital Markets, Greater China, where she represents the Exchange in promoting market opportunities to enterprises, investors, and market participants in Greater China, exploring and identifying investment opportunities in Singapore's capital markets. Deng Luming, CEO of Haitong International Securities Group (Singapore) Pte Ltd. Arrived in Singapore in 2000, a senior financial expert with 17 years of experience in investment banking, corporate management, and internet technology companies. Has led capital market transactions and driven technological transformations and globalization in technology companies. Currently serves as CEO of Haitong International Singapore, responsible for expanding the company's presence in Southeast Asia. Haitong International Singapore was established in 2013 as the first step in Haitong's internationalization. Currently, Haitong Securities Group has a presence in 16 countries and regions overseas. Tian Ye, Founder & CEO of Chinatown Delivery. Arrived in Singapore in 2001, graduated from the National University of Singapore, with 14 years of experience in software and internet. Is the founder of Singapore's Aiyao Technology. As a technical partner, he has engaged in technological innovations in smart transportation big data applications, Southeast Asian community marketing, and clean energy, and has extensive entrepreneurial experience. Established Chinatown Delivery in 2019, which currently covers Singapore, Malaysia, and Vietnam. Below is a transcript of this Talk, compiled by Xiaguangshe.

01.Singapore is also getting competitive, with over 30 new Chinese restaurants opening in just one month

Xiaguangshe: Today's guests have lived in Singapore for a very long time, starting with at least 20 years, and have a profound understanding and experience of Singapore. At the same time, the guests also have a good understanding of China. First question, which Chinese companies have we seen or felt have frequently appeared in Singapore recently? What are the recent changes in Singapore's attraction to Chinese companies? Xie Caihan: Yes, we have recently seen many Chinese companies come to Singapore. They may already have well-established business models domestically. Then, Southeast Asia has advantages in terms of population composition and the speed of economic development. So they want to bring their proven domestic business models to Singapore and then radiate out to Southeast Asia. Currently, the two clear directions we see are consumption and technology R&D. In terms of attractiveness, the Singapore Exchange (SGX) also serves as a sort of investment promotion bureau and economic development board here, communicating with many enterprises, helping them understand policies and find better resources; also helping them access resources in various Southeast Asian markets, as Singapore has excellent cooperation with countries like Malaysia and Indonesia; and then also hoping that through Singapore's relatively mature legal platform, they can reach countries with larger populations and markets.

Deng Luming: I think there have been quite significant changes in the past two years. Post-pandemic, there have been many changes in Chinese companies coming to Singapore. From my perspective as a capital market practitioner, they come to Singapore more to inquire about building an investment and financing platform through Singapore's capital market to help enterprises develop in broader international markets. Having been rooted in Singapore for so many years, of course, we will also see many changes in our daily lives, and one that is particularly profound is technology. Behind us is the headquarters of ByteDance Singapore, as well as technology giants like Huawei, Tencent, and Alibaba, which have made significant layouts in Singapore and continue to expand. With the arrival of these technology giants, they have also driven the consumption of electronic products, and at the same time, these technology companies are also increasing their investments. Another area is fintech. Ant Group has also obtained a Digital Banking license in Singapore. In addition, Chinese financial internet brokerage FUTU has also increased its investment in Singapore and expanded into Malaysia and other Southeast Asian countries through Singapore. The third area is the major consumer sector we are discussing today, mainly catering. In this major sector, from hotpot to Hunan, Sichuan, Yunnan, and other cuisines, there are different Chinese-funded enterprises. Following Haidilao's successful breakthrough in Singapore, they have all come to Singapore, and this trend is growing; in addition, beauty, fashion, and sports brands like Li-Ning and Anta have also made layouts in Singapore, and Haitong Securities-listed MINISO has also made significant layouts in Singapore. New energy vehicles are also evident. I walked downtown the other day and saw XPeng and BYD showrooms right in the city center. This is a signal that Chinese new energy vehicles want to enter Southeast Asia through Singapore.

Tian Ye: We operate a food delivery platform in Singapore and have extensive contacts with the catering and internet industries. Companies like Haidilao, Xiaolongkan, and Yunhaiyao have already established their overseas presence in recent years; in the past two years, companies like Taier Suan Caiyu and Micun Banfan have started expanding overseas; and many new domestic enterprises have rapidly expanded overseas in the past two years, moving from Singapore to places like Canada and the United States. They may have different reasons for expanding overseas. For example, the boss's personal reasons, such as wanting to immigrate; another reason is that expanding overseas was once an option for them, but in recent years, it has become a necessity. We have communicated with some catering enterprises that have come to inspect, and the catering market in Singapore is also very competitive now. Almost 30 new Chinese restaurants may open in a month, and 10-20 may close down. But when I talked to domestic catering enterprises expanding overseas, they said that compared to China, the level of competition here may still be ten times less intense. Because of Singapore's geographical location, it can be said to be a bridgehead for expanding overseas, especially radiating the entire Southeast Asian market. Singapore has a commanding view.

From the Singapore government's perspective, it has also provided many incentives such as investment promotion, tax incentives, and immigration policies. But I feel that the Singapore government has become increasingly picky, making deeper selections within its preferred industries. For example, from the perspective of boss immigration, there are actually multiple ways to immigrate to Singapore, such as the Global Investment Program (GIP) and patents, which the Singapore government actively supports. But for many catering industries, the government can provide very little support. Therefore, I think the government's policies towards the catering industry have tightened relatively, and it is not as easy to do business as it was a few years ago.

Xiaguangshe: Many tea and catering consumer companies have also ventured to Singapore this year. Have you communicated with them about their purposes? Tian Ye: Yes, we have met with the founder of Micun Banfan, and the inspection team of Laoxiangji has also been here before, along with many other brands. We can also help businesses with certain localized implementations, so we have such exchanges. I believe that catering enterprises expanding overseas can be divided into three types: The first type is relatively common, where the boss expands overseas and brings the business with them as part of their immigration plans; the second type is due to the intense competition in the domestic catering environment, and they seek overseas development, but in the first two years of their overseas expansion, they basically serve the overseas Chinese market, which is a mild form of overseas expansion; the third type is the true internationalization of Chinese cuisine, which involves making Chinese cuisine accessible to locals, like McDonald's, which has become an international brand. Within the third category, there are two subcategories. One is enterprises with excellent brand design, products, and product lines domestically, which possess advantages in product refinement, operations, supply chain, store design, and operations, and indeed have the conditions to expand overseas. However, whether they can achieve internationalization depends on their ability to localize. The other subcategory is capital investment in well-established Chinese restaurants overseas. For example, in Singapore, we currently have a Hunan cuisine brand that has been operating here for over a decade. With the addition of new capital, it can take off rapidly and become a catering enterprise with certain international attributes.

Xiaguangshe: Among these three types of overseas expansion, which one is more prominent? Tian Ye: I believe that the internationalization of Chinese cuisine is the biggest sector and proposition for Chinese cuisine to expand overseas. Relatively speaking, the largest customer group for Chinese cuisine is still in China. If you expand overseas but still serve the Chinese market, it might be better to develop your business domestically to cover a larger market.

02.The dining consumption in Singapore is also experiencing a downgrade

Xiaguangshe: Another question is whether there is a cyclical change in the heat of expanding to Singapore. Tian Ye: Overseas expansion has always been somewhat cyclical, with a bit of a tidal feel. That's why we call it the overseas expansion wave. I think this wave of overseas expansion may have started in 2019. In China, different regions and industries have different starting times, but it has now become a general trend. Some industries I never expected to see expanding overseas are now researching it.

Xiaguangshe: Like what? Tian Ye: For example, some medical industries, like traditional Chinese medicine. Actually, traditional Chinese medicine is very popular overseas. I think the earliest batch of companies expanding overseas, like Haidilao and Yunhaiyao, had an international vision and made such layouts early on, rather than being forced to expand. There was a middle batch of companies that expanded overseas, which I think may have been influenced by the immigration wave, where the founders wanted to immigrate, and their expansion overseas was relatively hasty. So when they came to Singapore, they needed to find a direction and what to do here. It was a mutual selection process between them, the Singapore government, and the local market. During this process, some companies may have left Singapore and gone to other overseas countries. The recent wave of companies expanding overseas, I think, is just for the sake of expanding overseas. But in terms of timing, these three waves are actually intertwined. Many people may have been researching overseas markets two or three years ago and have become very grounded when landing in Singapore this year.

Xiaguangshe: Mr. Deng, perhaps from your perspective, you also have some of your own observations. Deng Luming: I think the fundamental driving factors behind this wave of overseas expansion are essentially different from those of early enterprises expanding overseas. I also divide these overseas-expanding enterprises into several categories. The first category is market-driven, where intense competition leads to declining revenues and profits due to cost compression, resulting in some enterprises having to expand overseas. The second category is geopolitical influences, causing some enterprises to lose orders and have to expand overseas. The third category follows the shift in supply chains, which is not cyclical. Under the wave of market-driven overseas expansion, some entrepreneurs have global resource and asset allocation needs, so they need some identity transformation. At this time, Singapore is a very friendly place for Chinese entrepreneurs. In addition, due to changes in the audit and oversight of Chinese stocks in the U.S. capital market in 2022, some enterprises wanted to find a safe haven, and Singapore naturally became one of the most suitable places. After this incident, we now see that more enterprises are no longer considering Singapore as a secondary listing venue but are discussing making it their primary listing venue. When some dollar funds need to exit, they come to Singapore. Some enterprises may not have originally considered expanding overseas but ended up there due to capital market reasons. However, to successfully list in Singapore, they must have an overseas story and presence.

Xiaguangshe: Very clear. Later, we will focus on discussing the topic of listing in Singapore. But before that topic, I want to say that everyone in China talks about consumption downgrades. Will people living in Singapore also encounter this? If Singapore has also downgraded, what should many consumer companies currently expanding to Singapore pay attention to? Deng Luming: Let me start with some data. In fact, according to this survey, overall consumption in Singapore is on an upward trend. There are several major factors. The first is the increase in domestic demand, and the government has also issued many subsidies and vouchers; second, Singapore's economy has developed very well in the past few years, with consumption expenditure in Singapore actually growing by about 7% in 2024 compared to 2023; third is e-commerce, which has changed Singapore's consumption habits due to the pandemic, leading the government to tax the sale of consumer goods on e-commerce platforms.

Xiaguangshe: It still seems to be a very promising trend. What's your feeling, Ms. Xie? Xie Caihan: From the perspective of living in Singapore, I feel that everything has become more expensive. I've actually spent most of the past five years in China, and when I returned to Singapore, I found the cost of living there to be quite high. It could also be due to inflationary pressures, which limit purchasing power to some extent. On the positive side, Singapore was the first to reopen after the pandemic, boosting its retail and catering sectors, and many brands have come to Singapore, contributing to the current surge in consumption we see. Singapore's economic recovery has been very rapid. There is also a trend towards digital consumption and recognition of new brands. For enterprises to expand overseas, there are, of course, many factors that bring them to Singapore. What I have experienced is that Chinese brands can receive more recognition here; in addition, with more immigrants bringing more diverse products to compete in the market, consumers will have more choices, and they will also be willing to try new brands and pay a premium for a Chinese brand.

"Xiaguang Club: This is also an opportunity for many brands to go overseas, which has been widely discussed recently. Xie Caihan: In fact, we can see that many Chinese brands come to Singapore not only to seek development in Singapore, but also to value the markets around Singapore. For example, Malaysia has attracted some enterprises related to semiconductors to settle down, while Indonesia has a high degree of welcome for high-tech or consumer technology brands. Deng Luming: Let me add that I fully agree with Mr. Xie's view. We have been looking at the development of Southeast Asia in the next five to ten years. If we look at the overall GDP of East Asia, it will reach $4.7 trillion by 2025; at the same time, the population structure is very young, so it is an economy with great potential. If enterprises can go overseas to Southeast Asia, they will surely bring better business opportunities. And Singapore is the bridgehead for Chinese enterprises to enter Southeast Asia."

"Xiaguang Club: Establishing a foothold in Singapore and then expanding to the entire Southeast Asia will greatly help in terms of brand recognition in both capital markets and consumer markets. Mr. Tian, as you are engaged in the catering business, what are your thoughts on the consumer market in Southeast Asia? Tian Ye: From the perspective of catering consumption, I don't think the consumer market in Singapore is better than in previous years. In fact, there has been a slight decline. I believe that this wave of economic recession is global, and Singapore residents are already becoming more frugal in their consumption. The figures shared by Mr. Deng just now are actually very objective, which can show us the overall consumption situation in Singapore. However, from the perspective of catering, the total amount of consumption may not have changed much. Eating a Chinese meal in Singapore is still quite expensive. Especially when several friends dine together in a Chinese restaurant, the cost is already close to that of a fancy Japanese restaurant. Chinese cuisine has become a relatively luxurious product. For example, when I talked to my local colleagues in Singapore, they might eat in a Chinese restaurant once or twice a month. Because in their view, Chinese food is expensive, and without such business needs, eating such a Chinese meal is quite costly."

One of our feelings during the discussion is that to operate a Chinese restaurant in Singapore, one should either aim for the high-end market or the low-end market. From the second half of last year to now, there have emerged quite a few Chinese restaurants in Singapore, such as Micun Banfan and Baimixiang, which have somewhat shifted towards hawker center-style operations; Yangguofu Malatang has also been making many adjustments in terms of consumption, introducing meals for one person. Due to the significant price increases in Singapore, many strategies have been adopted. Recently, Putian Restaurant in Singapore has also made an adjustment, stating that there will be no GST and service charges for dine-in meals, which together account for 19%. "Xiaguang Club: There are two directions for catering businesses going overseas: branded catering and individual catering. Have there been any changes in their proportions this year? Tian Ye: This year, I have observed that almost all Chinese restaurants going overseas are branded businesses. When talking to such friends this year, my advice is to be cautious about opening new stores, as the competition is indeed fierce."

03.The number of companies looking to list in Singapore has increased by 30%

"Xiaguang Club: As we discussed earlier, many of our enterprises come to Singapore for two main reasons: one is to expand their business and market reach, and the other is to seize the opportunity of listing in Singapore. In the past, secondary listings were dominant, but now and in the future, the proportion of primary listings may increase. Mr. Xie is in charge of listing business at SGX. How have the cases or enterprises you have taken on this year changed compared to the past? Xie Caihan: Recently, we have noticed an increase of about 30% to 40% in the number of enterprises that are interested in listing in Singapore compared to a year ago. There are many factors contributing to this. Firstly, from the investor's perspective, there is a need for diversification. Secondly, as we discussed earlier, immigration is also a factor. When we communicate with entrepreneurs, investment migration is a commonly used option. Among the many factors considered for investment migration, having a business presence and setting up a company in Singapore, as well as hiring locally, are important considerations. We now make it clear to them that listing in Singapore is also a form of economic contribution. We have also seen that many high-tech enterprises value Singapore for its protection of intellectual property rights and abundant talent pool. They find the talent they need here and promote the development of their business. While they come here for various reasons, I believe that our market has also played a significant role in attracting more funds and investors to Singapore during this period. These investors can better judge which enterprises are likely to have a longer-term development and stronger business model sustainability. By investing in these enterprises, they also help them access better resources. Many people view listing as a means of raising funds, but in fact, listing can bring many other benefits, including non-financial gains."

"Xiaguang Club: Last time, we briefly discussed that many enterprises come to Singapore to list not solely for financing purposes. Could you elaborate on the real needs of many Chinese enterprises that are now considering secondary or even primary listings in Singapore? Xie Caihan: For secondary listings, branding is often a key motivation. Companies hope to package themselves as Singapore-listed companies through SGX, which will facilitate their engagement with partners in other markets. Recently, there has been a concept gaining traction that due to Singapore's good relationships with various regions, having a Singapore identity can demonstrate a certain degree of independence while still leveraging Chinese resources effectively. Although supply chains may gradually shift overseas, many people in the international market highly recognize China's supply chain. They do not necessarily require companies to relocate everything overseas. Instead, they may retain 60% or 70% of operations in China and take 30% to 40% overseas, which helps diversify risks and positions the company as an international player. In other markets, the listing process can take at least a year, whereas a secondary listing in Singapore may only take half a year from start to finish. This allows companies to quickly obtain an overseas listed company status and pursue other opportunities. Of course, we also have primary listings. These enterprises may have had no prior exposure to international markets and hope to take their first step into the international capital market through the diverse international investor base in Singapore. For Chinese enterprises seeking to engage with European and American markets, there are still geopolitical risks, and they can use Singapore as a bridge to connect with investors there."

"Xiaguang Club: A very insightful observation. Mr. Deng, you assist many enterprises with their IPOs, and you must have taken on more such cases this year. How many more cases have you taken on compared to previous years, and what are their main demands? Deng Luming: Actually, inquiries from enterprises interested in listing in Singapore have been continuous since 2022. Of course, there have been some changes along the way. In 2022, secondary listings were more prevalent, which was more of a passive behavior; however, from last year to this year, we can see that primary listings are forming an ecosystem. In the past, entrepreneurs would consult about listing in Singapore while their businesses were still in China. Now, their businesses have expanded, and the ecosystem around them, including Chinese law firms such as Fangda Partners and Han Kun Law Offices, have set up offices in Singapore in the past one to two years. Some other prestigious law firms have also increased their lawyer presence here, essentially hoping to help more enterprises leverage Singapore to access global markets. Returning to the topic of changes, firstly, the scale of enterprises inquiring about primary listings is generally larger than before; secondly, their industries are more diverse, with demands now spanning from traditional manufacturing to biomedicine, technology, and consumption; thirdly, behind these enterprises, there are often shadows of leading US dollar funds, which have provided them with significant support in China, prompting them to expand overseas. Apart from the diversification of industries, there have also been significant changes in listing structures over the past one to two years. After the filing system was introduced in March last year, many enterprises observed the situation for some time before deciding to proceed. This path is now clear, and people believe that there is little difference between listing on SGX, the US stock market, or the Hong Kong stock market."

In addition, we have seen some A-share listed companies considering spinning off their overseas businesses and listing them in Singapore. We currently have a case in progress. Another type of case involves domestic equity structures that are not suitable for overseas listings, so they incubate a parallel structure and raise private equity financing in Singapore before listing on SGX. Therefore, enterprises are now using various structures to access the Singapore capital market. People can now see the real help that listing on SGX can bring to enterprises, as well as the opportunity to access other markets through secondary listings (add-on listings) after listing on SGX. We are also working to activate Singapore's high-quality capital by introducing excellent enterprises. We hope to collaborate with large local family trusts and family offices in Singapore, as well as leading Chinese US dollar funds, to connect their high-quality portfolio companies with Singapore family offices, forming an ecosystem. This cooperation has already received support from leading US dollar funds.

04.SGX, a more internationalized capital market

"Xiaguang Club: In fact, the Hong Kong Stock Exchange (HKEx) has also been a very important choice for many Chinese enterprises in the past. What are the respective advantages and characteristics of HKEx and SGX, and how do Chinese enterprises going overseas choose between them? Deng Luming: This question has been asked by friends on important occasions before. I believe that these two exchanges have many similarities, and their regulatory environments and frameworks are also very similar. From a geographical perspective, HKEx, backed by China, is the first stop for Chinese enterprises going overseas and the first point of contact for enterprises and international investors. In contrast, SGX takes another step forward by leveraging Singapore as an international financial center to connect with international investors in Southeast Asia. Therefore, in terms of investor composition, most investors on HKEx invest in the Chinese market; however, in Singapore, investors are more diversified, and they also hope to see more diversified companies."

This is why we tell enterprises that if their entire business is domestic and they have no plans to go overseas, SGX may not be the most suitable place for them. Conversely, if they want to use the SGX platform to build an international brand, SGX is a better place for their business development than HKEx. Ultimately, it depends on what the enterprise itself wants. In fact, these two exchanges are interconnected. We have also seen many companies listed on HKEx come to SGX for secondary listings. I believe that if enterprises want SGX to better help them internationally, they should list on SGX for secondary listings. Conversely, if I first list on SGX and want to reach more investors who understand the Chinese market in the future, I can also return to HKEx."

"Xiaguang Club: Very insightful. For my next question, which types of enterprises does SGX prefer, and what support policies does it have in place? Xie Caihan: We can look at this from several dimensions. One is the growth stage of an enterprise. High-growth and mature enterprises are both well-supported in Singapore. SGX has two boards: the Mainboard and the Catalist. The Mainboard supports more mature enterprises with larger scales, stable revenues, and strong profitability. These enterprises can list on the Mainboard and, if their market capitalization reaches S$7 billion, they may also be included in the SGX index, attracting more investor attention. For medium-sized enterprises, we also pay attention to them. There are many of them, with over 2,000 companies and a market capitalization of S$5 billion. They may not receive much attention after listing. However, with only around 600 listed companies on SGX, we hope to attract more large enterprises to increase market liquidity. In fact, from the first day of listing, we strive to provide resources to enterprises to gain more attention. The Catalist is a sponsor-based board with higher growth requirements. It requires a sponsor to help with compliance and regulatory requirements. Its financing and M&A requirements are also relatively simple. There is a lot of money in the Singapore capital market, and to channel this money into the market, we need to provide familiar investment targets. Consumers are enthusiastic about investment, and we have also seen that medical enterprises also value setting up in Singapore. The medical sector is divided into innovative drugs or medical devices, both of which can develop well in Singapore."

In the medical field, the most advantageous sector is medical services. We have also received some inquiries about listings recently, so this is an area of focus for us. Technology was also mentioned earlier, which is an industry with the most imagination space. To bring more liquidity and diverse investors into the market, technology can often provide investors with more potential returns. Additionally, I would like to add that renewable energy and industries related to ESG (Environmental, Social, and Governance) background are also areas of focus. We now have a group of special investors who focus solely on ESG industries, and we hope to bring more such theme-based enterprises to Singapore.

"Xiaguang Club: Speaking of ESG, global attention to ESG has been high in recent years. If a company lists on SGX, what ESG requirements does it need to meet? Xie Caihan: SGX is arguably the first in the region to require listed companies to submit ESG reports. When promoting ESG, we have taken a step-by-step approach based on the size and sector of different enterprises, and the market has been very receptive. Many enterprises have now realized that ESG reports can attract investors and specific ESG groups during equity offerings, providing them with different financing options and optimizing their capital structure. Furthermore, as ESG evaluation agencies in Singapore continue to improve, the cost of preparing ESG reports can be reduced. As a listed company ourselves, we also prepare ESG reports to guide our listed enterprises in this direction."

"Xiaguangshe: Does Mr. Deng have any ESG requirements for the enterprises he contacts? Deng Luming: For traditional industries, we hope they can meet the ESG requirements. In recent years, there are fewer and fewer enterprises in traditional industries that specifically want to carry out ESG remediation, and in fact, domestic enterprises are increasingly adopting the concept of ESG. For example, in the energy sector, we will definitely pay attention to it."

05.Going global, the most important thing is to think it through

"Xiaguangshe: We have talked a lot about listing cases just now. Next, let's talk about the ways to list on the Singapore Exchange and what are the characteristics of these ways? Xie Caihan: The first way mentioned earlier is IPO, and there are also different products to list, like SPAC, which is popular in the US and is also being operated in Singapore. For real estate-focused enterprises or other heavy asset industries that can generate stable returns, such as shipbuilding, aircraft, and infrastructure, they can list as 'business trusts.' Listing can take different structures. In Singapore, we can also do a direct listing. Chinese enterprises do not need to set up red chips or offshore entities. Another way is through large red chips and ordinary red chip structures, which are recognized by the Singapore Exchange. If an enterprise has both domestic and international businesses, it can try to spin off its international businesses, which will be better recognized by international investors and can obtain better valuations. This is of great help to their brand building and valuation enhancement. Deng Luming: At present, most of the enterprises listed in Singapore are still red chips, mainly non-VIE structured. For enterprises, first, they need to figure out why they want to list; second, why they want to list in Singapore. In this process, of course, they need to communicate well with the Singapore Exchange, securities traders, lawyers, and auditors. Before launching the listing, enterprises need to plan out the entire execution loop, figure out how to complete the listing and financing, how to tell the story, what their competitive advantages are, and who the potential investors are."

"Xiaguangshe: Mr. Xie, if a Chinese enterprise wants to list on the Singapore Exchange, what kind of preparations does it need to make? Xie Caihan: Many enterprises come to Singapore and feel that the laws and regulations here are very strict. If they study it carefully, they will find that Singapore is similar to other markets in many ways. In addition, the entire window period is very important, and we will help enterprises capture the best issuance window from regulation to the business department. In the past, we have seen everyone rushing to go public, but when they arrive, they cannot find investors, resources are not yet integrated, and the intermediary institutions and investors they find do not match their needs, which makes it difficult."

"Xiaguangshe: Finally, I would like to hear some suggestions from the three of you. We say that Singapore is a starting point for going overseas to Southeast Asia. What suggestions do you have for enterprises that want to lay out in Southeast Asia through the Singapore market? Xie Caihan: I think that when entering a new market, cultural exchange is very important. Singapore will give them a comfortable feeling, like a second home outside of China. Deng Luming: I agree with that. In addition, Southeast Asia may seem like a large economy, but after truly stepping into it, one will find that the culture, regulation, policy, and language of each country are different. Therefore, first, it is important to understand the culture of your target market. Second, the services and products you provide must be adapted to the local market, so your team must be grounded or even be a local team to operate in that market. The third is to make friends. There are many Chinese businessmen in Singapore who are very welcoming to Chinese enterprises. If an alliance can be formed, you will not be alone in exploring this market. Tian Ye: I don't think we should take the overseas market lightly. In recent years, domestic enterprises have become very competitive and developed rapidly. When they go overseas, they may wonder why the competition is not fierce. This is because foreign government policies and upstream and downstream industry relationships mean that some things do not need to be done in a certain way, and they exist for a reason. If we simplistically think that we can change things just by entering the market, we may step into some pitfalls. Our overseas entrepreneurs should not rush to compete in an industry when going overseas. Many of them are Chinese doing it themselves, and in the end, it becomes Chinese competing against Chinese, and no one is doing well."