Dear Readers
It was announced recently, by Prime Minister Najib, that Bursa Malaysia and Singapore Exchange will embark in a collaboration which will see both bourses be linked.
Details of the trading link remain sketchy except for the following:
Investors are said to be the biggest winner as:
Such a trading link is not unheard of. In 2014, Shenzhen and Hong Kong embarked in a similar scheme, namely Shenzhen – Hong Kong Connect. The said scheme was successful in achieving additional liquidity and lowering costs, with the least changes to each other’s existing regulatory system, market structure and market practices. The said connect also improved the standard of financial standards of companies listed in the Shenzhen exchange.
I would imagine that Malaysian investors would be spoilt for choice, from the many shares, derivatives and exchange-traded funds traded on SGX, once the trading link is established. Further, the trading link will encourage local companies to exercise better corporate governance and financial reporting if they intend to attract more investors from the Singaporean side. This would also be to the benefit of local investors.
Are you optimistic about the trading link? Do leave a comment.
https://bursagoinglong.wordpress.com/2018/02/12/bursa-malaysia-singapore-exchange-link/
Created by bursagoinglong | Mar 02, 2018