Chinese companies are increasingly looking to Southeast Asia as a fundraising and listing destination, as tariff tensions with the United States and capital movement restrictions at home prompt a shift in strategy.
The pivot is gaining momentum in 2025, with a rising number of firms exploring dual listings or asset-based offerings in regional markets such as Singapore, Thailand, and Indonesia.
“Interest in dual listings in Southeast Asia is quite real,” said Jason Saw, group head of investment banking at CGS International, a Singapore-based unit of China Galaxy Securities, in a report by WSJ.
He added that the momentum has accelerated this year, especially after President Trump’s’ “Liberation Day” tariff announcements in April,
Traditionally, Chinese companies have opted for secondary listings in the US or Hong Kong.
While Hong Kong continues to be a preferred option, ongoing tensions between Beijing and Washington are leading many firms to consider Southeast Asian financial hubs, which offer regulatory flexibility, geographical proximity, and expanding investor bases.
Clutch of IPOs, secondary listings in the works: CGS
CGS International is currently advising on eight to ten significant transactions in Southeast Asia, including initial public offerings, secondary listings, and share placements.
Most of the companies involved are based in mainland China or Hong Kong.
The firm played a key role in the Singapore Exchange debut of Helens International, a China-listed pub chain operator, last year.
Saw said two to three similar listings are scheduled for Southeast Asia in 2025, the report mentioned.
The move is driven partly by capital controls imposed by Chinese authorities, which make it difficult for companies to move funds offshore.
Dual listings and asset-based offerings provide a mechanism to raise capital abroad while staying compliant with domestic regulations.
In Thailand, a Chinese food chemical company is preparing to list its local assets on the Stock Exchange of Thailand with CGS International’s assistance.
Indonesia attracting Chinese entrepreneurs
Meanwhile, in Indonesia, Chinese entrepreneurs backed by mainland private-equity funds have launched local ventures and are exploring listings on the Indonesia Stock Exchange.
Despite a challenging year in 2024—when IPO activity across ASEAN declined by 21% in volume and 38% in value, according to EY—there is optimism for a revival in 2025.
Analysts cite easing inflation, expected interest rate cuts, and improving political stability as factors supporting a rebound in capital markets.
Demographics and diplomacy add to Southeast Asia’s appeal
Southeast Asia’s appeal also stems from its growing population and rising consumer spending power, making it an attractive destination for Chinese firms in competitive sectors such as retail, technology, and food services.
Adding to the momentum are warmer diplomatic ties between China and Southeast Asian nations.
In April, Chinese President Xi Jinping visited the region and signed several trade and business cooperation agreements aimed at strengthening cross-border investment.
While some listing plans may face delays due to ongoing geopolitical risks, the broader trend of Chinese companies looking south for fundraising is expected to continue.
“It’s natural for companies to take a pause,” Saw said. “But we believe Southeast Asia will remain a key diversification route as firms navigate geopolitical headwinds.”
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