Thursday, April 27, 2006

If I were running the SGX 4 comments

(P.S: Sorry for any disturbances the advertisements above may have caused you)
TGIF, it's time for some light-hearted thoughts and since I have recently taken to writing up lists like my Random Thoughts article, I thought it'd be good to do up another one.

What I would do if I were running the SGX

10. Pay up an additional 0.0000000001% of my revenue to increase data storage capacity so that company announcements can be kept on the SGX website for longer than 3 months, say 6 months -1 year.

9. Acknowledge that my regulatory function and profit-making function are fundamentally at odds with each other, and hence cede it to an independent party. In this way, I won't have the dilemma of wondering how to query my company's own recent drastic share price surge. (MAS did that for them in the end, in an unprecedented move).

8. Be more persistent in questioning other companies in the event of their shares' heavy trading, rather than accepting the standard "we have no idea why it is heavily traded" reply.

7. Develop some sector indices since the existing ones are hopelessly outdated and nobody pays attention to them; in particular update the Sesdaq index with a more relevant set of representative small-caps with market cap less than S$100M, say; and a China stock index.

6. Invite Warren Buffett for a Bull Talk every year (and scrap that Bull Run). After all, even George Soros and Jim Rogers came in for visits. Maybe if Buffett came in, some nice bargains on the SGX might come in for his attention? :-)

5. Give more publicity to ETFs (exchange-traded funds) the way banks promote that gambling instrument known as structured warrants, and develop the bond market (rating agencies etc) so that Singaporeans can all use 100% of our CPF to invest for excess returns (and SGX can also make money in the process of course). The thing to note, of course, is that for stocks only 35% of CPF can be used, to protect Singaporeans from themselves.

4. Encourage brokerages to develop the local SME market instead of going to China all the time to look for IPOs. For example, tie-ups with A-STAR, SPRING, EDB etc since they are all involved in promoting R&D and/or local entrepreneurship. Man, Singaporeans should help Singaporeans!!

3. Close the loophole of backdoor listings through reverse takeovers; people go through backdoors for a reason, and so do companies --- to minimise (regulatory) attention (well, I need to acknowledge that some also do so to avoid floating too much shares in public ie. they want to retain control).

2. Recognise that stock talk on the Internet is worth paying attention to as one of the modern means of marketing a stock and providing new information on its business, and recommend a few good ones (such as DanielXX's stock blogs)

1. Find out how Keda Communications has been able to keep such a beautiful stock chart since its listing, with share price at 50 cents all the way and thousands of lots being traded daily, in a period of high volatility.




Blogger Quest said...

yep, you should write more posts like this.
this is becoming more like a blog and less formal like.

4/29/2006 6:53 AM  
Anonymous Anonymous said...

many well said and thoughful ideas there! should forward a copy to the sgx folks!!

4/29/2006 3:02 PM  
Blogger DanielXX said...

Thanks guys and may I add a qualified statement: SGX is doing a good job as it is, let's not take away the credit. Good recovery job from the CAO scandal. And all power to the local talent Hsieh FH who took over from the FT.

5/02/2006 8:41 PM  

Great post on sgn.

1/14/2014 10:41 AM  

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