The Singapore Exchange is about to make life easier for listed companies — at least the safer ones.
The bourse’s regulatory arm plans to end quarterly earnings reporting requirements that apply to all companies with a market capitalization of at least S$75 million (US$56 million), Singapore Exchange Regulation (SGX RegCo) chief executive officer Tan Boon Gin (陳文仁) said.
When the rule change takes effect on Feb. 7, only riskier companies would need to report earnings every three months, Tan said at a news conference.
SGX RegCo is also to tighten other disclosure rules and introduce a new whistle-blower policy as part of efforts to protect investors, Tan added.
Other global exchanges have moved away from mandating quarterly reporting for all of their companies. The EU ended its requirement in 2013, while the Hong Kong Stock Exchange only applies the rule to companies on its small-cap exchange. The US Securities and Exchange Commission is reviewing the issue.
“Internationally, there’s a shift away from quarterly reporting and this is to allow companies to focus on the long term,” Tan said.
About 75 percent of the Singapore market reports on a quarterly basis, SGX RegCo said.
Under Singapore’s new policy, a listed company would have to report each quarter when it receives a qualified report from its auditors, or when they express concern about the company as a going concern.
The requirement can also be imposed if SGX RegCo has regulatory concerns about a company regarding disclosure breaches.
Despite the new rules, most larger companies, including banks, would likely continue reporting on a quarterly basis, National University of Singapore associate professor Mak Yuen Teen (麥潤田) said.
“When a source of information disappears, investors will use other sources as proxies, like analyst reports, and these will be less accurate,” he said.
SGX RegCo said that the quarterly reporting requirements would apply to about 100 companies when the rules change. It plans to make the list public.
Other Singapore-listed companies would need to report semiannually, though the exchange would “encourage” them to provide business updates on a more regular basis, Tan said.
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
A Bollywood actor’s face tattooed on his arm, Sandeep Bacche’s devotion shocks few in India where stars enjoy semi-divine status, but even there the hallowed silver screen might be losing its shine to streaming services and pandemic fears. “Whenever things get better and theaters begin operations, I will watch three movies a day for sure just as a way to celebrate,” said the Mumbai rickshaw driver, who is recovering from the virus himself. However, others might not join the party. With cinemas shut for months due to a COVID-19 lockdown, and little prospect they will reopen soon, frustrated Bollywood producers have turned to
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, is to issue NT$13.9 billion (US$469.5 million) in unsecured bonds to help fund its plan to expand production capacity, it said on Friday. In a Taiwan Stock Exchange filing, TSMC said the bonds would comprise three tranches: NT$5.7 billion payable over five years, NT$6.3 billion over seven years and NT$1.9 billion over 10 years. The interest rates would be 0.58 percent on the five-year bonds, 0.65 percent on the seven-year ones and 0.67 percent on the 10-year tranche, TSMC said. Capital Securities Corp (群益金鼎證券) is to serve as the main underwriter in