📉 Alibaba Cuts SingPost Stake, But Market Steady

SGX:S08.SI:Singapore Post (SingPost) shares dipped after US:BABA:Alibaba Group’s investment arm sold 151.3 million shares, cutting its stake from 11.3% to 4.6%. The off-market sale at S$0.426 a share raised S$64.4 million, below SingPost’s 52-week low of S$0.43.

🔹 Unknown Buyers, Morgan Stanley Role
Top shareholder SGX:Z74.SI:Singtel, which holds 22%, offered no comment on the transaction. US:MS:Morgan Stanley underwrote the sale and later offloaded 104 million shares at an average S$0.4292, keeping just 2.1%.

🔹 Strategic Context
The sell-down follows April’s unwinding of Alibaba’s joint ventures with SingPost in Shenzhen 4PX Information and Technology and Quantium Solutions International. Despite early hopes, Alibaba never gave SingPost preferential logistics orders.

🔹 Weak Fundamentals
For Q1 FY2026, SingPost’s revenue fell 23.6% to S$162.3 million while operating profit plunged 60% to S$3.4 million. Its postal arm remains in decline, and its logistics unit faces fierce competition. The group’s reset strategy after divesting Freight Management Holdings is still unclear.

🔹 Investor Takeaway
Shares closed at S$0.43 on Sept 16, down 1.2%. Analysts say Alibaba’s exit alone should not spook investors, with SingPost’s turnaround hinging on its own execution unless new strategic partners emerge.

📈 SGX RegCo Chief Charts Path for REITs, Equity Market & Climate Disclosures

SGX:SGX.SI:Singapore Exchange (SGX) Regulation CEO Tan Boon Gin outlined reforms at the REIT Association of Singapore Annual Conference 2025, balancing innovation with investor protection.

🔹 Disclosure Regime Shift
Tan said Singapore’s “disclosure-plus” rules have become too prescriptive. While IPOs may see more flexibility, he defended rights of first refusal (ROFRs) for REITs as a vital competitive advantage.

🔹 Value-Unlock, Institutional Push
The government’s Equity Market Development Programme will inject public funds into small- and mid-cap equities through external managers, mirroring Japan’s GPIF model. Tan praised REITs for unlocking value via asset injections, stapled REIT-business trust structures, and diversification.

🔹 Engagement & Dividends
Echoing Minister Chee Hong Tat, Tan urged better investor engagement. SGX RegCo plans consultations to make dividend and investor relations policies part of listing rules, sparking debate on whether sponsor fees should be tied to asset value, NPI, or DPU.

🔹 Climate Reporting Roadmap
Climate disclosure timelines are being extended but with clear milestones. SGX will guide issuers toward ISSB standards with support from ISCA, Enterprise Singapore, and SkillsFuture.

🔹 Sector Outlook
Tan ended on an optimistic note, calling on REITs to seize positive momentum. He said public consultations on market reforms will begin in coming months, with regulators open to feedback.

Thank you