As many as 500 Chinese companies have quietly redomiciled or registered in Singapore over the past 12 months in a bid to hedge against rising geopolitical risk as tensions between Beijing and Washington escalate.
They follow online fast-fashion retailer Shein, electric vehicle maker Nio and IT services provider Cue, who were among the first to switch parent companies or global headquarters to Singapore, list on the stock exchange, acquire local businesses and form joint ventures in the city state.
Chinese businesses setting up in Singapore is not a new phenomenon, but senior bankers say there is now an “acute” rush by mainland groups to establish holding companies to future-proof their businesses as the west steps up its scrutiny of corporate China.