Locally-based Asian equity managers have welcomed the Singapore Stock Exchange’s proposed takeover of the ASX, saying it will boost liquidity as well as institutional investor appetite for regional mandates.

 

Peter Sartori – It’s an attempt by the SGX and ASX to stay relevant in the face of growth from Shanghai – reforms to the A-share market will open it up and see it grow massively over next 20 years.

 

There’ll be a few arbitrage opportunities for us, particularly we’ll pay attention to currency moves between the two countries. Not a great deal of day-to-day operational differences for us.

 

SGX – Financial services and property companies dominate.

 

The fascinating thing for me will be whether this helps get rid of a few regulatory hurdles, strengthens relationships on the corporate side and paves the way for other mergers – banking would be an obvious one, you’ve got ANZ talking about its plans for the region.

Join the discussion