Southeast Asia Listings Could Benefit From Regulatory Changes in U.S., China — Market Talk

What happened

EY's Chan Yew Kiang said Southeast Asia listings could gain from regulatory overhauls in the U.S. and China that may encourage more cross-border deals. He noted that IPO deal volume in the region slowed in the third quarter.

Confirmed

Global impact / market context

More cross-border listings could let Southeast Asian companies reach a wider base of investors and gain international visibility. That can support share sales and capital raising, though Chan cautions the cross-border listing process could be long and complex for companies.

Analyst inference

A subdued economic outlook, geopolitical conflict, weak post-IPO performance and cautious market sentiment weighed on Southeast Asian IPO volume in the third quarter. The Federal Reserve's interest-rate hike, which raises borrowing costs, likely also reduced IPO activity by making investors more selective.

Analyst inference

What to watch

1. Chan said regulatory changes in markets such as the U.S. could bolster cross-border listings in Southeast Asia, which companies might pursue to internationalize their investor base. Confirmed
2. Watch whether the regulatory overhauls in the U.S. and China that Chan cites actually lead to more cross-border deal announcements involving Southeast Asian companies. Proposed
3. Track whether better transparency and listing quality from these changes improve weak post-IPO performance, since that weakness reflected cautious sentiment and weighed on volume. Analyst inference

Evidence

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