China Medical System (867 HK): SGX Secondary Listing Benefits Questionable

• On the 24th June 2025, specialty pharmaceutical play China Medical System (867 HK) (CMS) announced a proposed secondary SGX listing, by way of introduction. No equity fundraising will occur.

• The SGX has given the green light, with shares expected to commence trading on the 15th July.

• This secondary listing is not, it would seem, a pre-cursor to an HKEx withdrawal; but to "enhance the [CMS’s] global visibility, thereby facilitating its international business expansion".

This insight is largely a discussion on the secondary listing mechanics.

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Conclusions First

• Maintaining a secondary listing on SGX involves additional regulatory compliance, reporting requirements, and costs (SGX listing fees, legal, and audit expenses).

• SGX has fewer pure-play pharmaceutical companies compared to HKEx.

  • Given its proximity to mainland China and its investor base - who would be familiar with its operations - CMS' HKEx listing is a natural fit.

  • I don't buy into "the SGX listing is expected to improve the liquidity".

  • I'd expect the SGX to see (a much) lower trading activity for CMS shares versus HKEx.