The Singapore Exchange(SGX), together with Phillip Securities, has launched six new Singapore Depository Receipts (SDRs) mirroring Hong Kong- and Thai-listed blue-chips. This brings SGX’s total SDR shelf to 21 securities.

Three Hong Kong mega-caps — Semiconductor Manufacturing International Corp (SMIC), JD.com and PetroChina — and three Thai companies — Bangkok Dusit Medical Services, CP Foods and Gulf Development — began trading today.

SGX’s 21 SDRs now cover approximately 50% of the SET50 and Hang Seng Index by constituent weight.

SDRs are instruments each representing beneficial interest in an underlying security listed on an overseas exchange. They are issued on an unsponsored basis, and the issuer does not have a formal agreement with the underlying company.

SGX launched Thai SDRs in May 2023. Commenting on the new additions, SGX notes that food conglomerate CP Foods is the second-best-performing SET50 index constituent year to date, while Bangkok Dusit is the largest private hospital operator in Thailand.

Gulf Development has been reintroduced as an SDR following its merger with InTouch in April to become Thailand’s fourth-largest listed company.

SGX launched Hong Kong SDRs in October 2024, mirroring five mega-cap companies while lowering minimum investment sums to as little as 2% of what an investor in Hong Kong would typically pay.

According to SGX, the minimum investment size for the three new HK SDRs is under $250, compared to $4,000 for the actual Hong Kong shares owing to varying board lot sizes.

Since the launch of SDRs on SGX, daily turnover has surged 11-fold to hit a record $5.4 million in May and assets under management (AUM) crossed $100 million that same month, says SGX on June 20.

“The growing demand reflects a broad shift — depository receipts are fast becoming a mainstream tool for investors to tap into regional names like Alibaba, BYD [and] Bangkok Dusit — all traded conveniently in Singapore dollars,” says the local bourse.

According to SGX, over 60% of AUM are held by over 7,000 retail investors. The top-traded SDRs year to date are Hong Kong names BYD ($1.1 million) and Alibaba ($900,000). Meanwhile, Thai SDRs have seen wider participation from retail investors and “activities” have doubled since its launch in 2H2024, says SGX.