Commentary: Liquidity fix for small and mid-caps on SGX requires more to be done
Singapore Exchange (SGX) chairman Koh Boon Hwee has stated that the bourse cannot be held responsible for the liquidity of small and mid-cap stocks. He argues that listed companies must proactively communicate their strategies to attract investors rather than relying on the exchange to boost valuations.
Why it matters
This highlights the ongoing debate regarding the role of stock exchanges in supporting smaller firms and the responsibility of listed companies in market transparency.
SGX says it should not be faulted if stocks have poor liquidity. It has a point, but the bourse can do more, says former editor and financial journalist Ven Sreenivasan.
FILE PHOTO: Singapore Exchange's (SGX) logo is seen in the central business district, Singapore, April 7, 2020. REUTERS/Edgar Su/File Photo/File Photo
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