Singapore retail investors will be able to invest in Thai blue chip companies from May 30

SINGAPORE – From May 30, retail investors in Singapore will be able to buy and sell shares in blue chip Thai companies listed on the Stock Exchange of Thailand.

It’s as easy as buying and selling Singapore stocks on the Singapore Exchange (SGX).

This was made possible after SGX announced on Tuesday that it would launch Singapore Depositary Receipts (SDRs) under its DR partnership with the Stock Exchange of Thailand.

This is the first exchange-level cooperation in ASEAN on depositary receipts and marks an important step forward in enhancing equity market connectivity.

Similar to American Depository Receipts in the United States, SDRs are instruments that represent interest on an underlying asset listed on a foreign exchange, in this case the Thai Stock Exchange.

Serene Kai, head of securities trading at SGX Group, said each SDR will be issued on a one-to-one basis. This means one SDR represents one share in a Thai company, she said.

He added that, like stocks traded on SGX, SDRs trade on a standard board lot size of 100, meaning an investor buying one lot would actually be buying 100 SDRs. rice field.

SDR trades on SGX during local trading hours. All transactions and cash distributions will be denominated in Singapore dollars. The SDRs are then stored in the investor’s central escrow account.

Michael Singh, senior managing director and head of equity at SGX Group, said the first batch of SDRs would be linked to three Thai companies riding on the theme of reopening and energy.

They include Thailand Airport, Thailand’s largest airport operator. CP All operates Thailand’s largest convenience store chain under the 7-Eleven brand. PTT Exploration and Production, the only listed exploration and production company in Thailand.

Together, these three companies account for 18% of the Benchmark SET50 Index, a large-cap market index that tracks the top 50 stocks on the Stock Exchange of Thailand.

Thai investors will now have access to Singapore companies in the form of depositary receipts listed in Thailand, Singh said.

“We will invite some Singaporean companies to Thailand. I am checking with my Thai friend. Which stocks would you like to buy? Would you like our bank? How about a real estate investment trust?”

SGX said there are mutual benefits in working with Thailand.