They can be bought and sold like any stock listed on the Singapore Exchange, but they are not exactly a stock. What are Singapore Depository Receipts? Since last year, local investors looking to diversify into businesses listed on some overseas stock markets have been able to trade a type of investment product known as Singapore Depository Receipts (SDRs). The first three SDRs made their debut on the Singapore Exchange (SGX) in May 2023.
They are tied to blue-chip stocks from Thailand, such as airport operator Airports of Thailand, allowing those keen to dip their toes into other Southeast Asian markets to do so directly through the SGX. More were added this year, with another five Thai-listed firms in May followed by five Hong Kong-listed firms in October. The latter include Chinese tech giants Alibaba and Tencent, as well as Chinese electric carmaker BYD. SDRs can be traded easily like any SGX-listed stock; some even come with dividends paid out in Singapore dollars. But they are not to be confused with owning the actual stocks of these overseas-listed companies. And investors here have long had access to some other foreign businesses whose shares are listed directly on the SGX such as Thai Beverage and Hong Kong-headquartered Hongkong Land. Depository receipts are a type of investment product that represents an interest in a stock or security that is listed on an overseas exchange, said Mr Gerald Wong, the founder of investment advisory platform Beansprout. They are not new. American Depository Receipts (ADRs) are “widely traded” by US investors to gain exposure to non-US stocks, said Ms Carmen Lee, OCBC’s investment research head. ADRs are traded on US stock markets just like domestic stocks, and are typically denominated in US dollars. The SDRs listed on the SGX are priced in Singapore dollar
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Fonte: IndependentSG - 🏆 2. / 72 Consulte Mais informação »