The Singapore Exchange S68 (SGX) will launch Singapore Depository Receipts (SDRs) for Hong Kong-listed securities within 4Q2024, according to a source who has requested to remain anonymous as the matter is private.
SGX has been speaking to market-makers about the new SDRs, which have so far only been offered for select blue-chip securities listed on the Stock Exchange of Thailand (SET).
The upcoming Hong Kong SDRs will have a standard board lot size of 100 shares, according to the source.
Unlike the standard board lot size of 100 shares for SGX-listed issuers, board lot sizes in Hong Kong are determined by each issuer. Tencent, for example, has a lot size of 100 shares, while JD.com’s lot size is 50 shares and BYD Company’s lot size is 500 shares.
SGX launched Thai SDRs in May 2023. The inaugural SDRs were issued by Phillip Securities, representing ownership interest in the underlying securities of Airports of Thailand, CP All and PTT Exploration and Production.
SGX launched five more Thai SDRs on April 1, representing the securities of Advanced Info Service, Delta Electronics, Gulf Energy, Kasikorn Bank and Siam Cement.
See also: Access global markets with Singapore Depository Receipts
The Edge Singapore has reached out to SGX and Phillip Securities for comment.
SDRs are instruments each representing beneficial interest in an underlying security listed on an overseas exchange. An SDR is issued for trading on the SGX securities market on an unsponsored basis by an intermediary, referred to as an SDR issuer, who does not have a formal agreement with the underlying company.
Each SDR is represented by a specific number of securities listed on an overseas exchange, deposited with a custodian appointed by the SDR issuer and held on trust for SDR holders.
SDR holders are able to convert between the SDR and underlying security via an issuance and cancellation request through the SDR issuer.
