The Stock Exchange of Thailand (SET) and the Singapore Exchange (SGX) introduced a three method partnership that allows the buying and selling of three depositary receipts (DRs) of Thai-listed corporations on the SGX. Massive , launched yesterday, is the first of its kind under the Thailand-Singapore DR Linkage challenge and aims to boost the enchantment of Thai-listed firms within the regional market by connecting them with foreign investors.
A DR is a negotiable certificate that represents shares in a overseas company traded on a local inventory trade. The preliminary three DRs of Thai securities on the SGX include Airports of Thailand (AOT), CP All (CPALL), and PTT Exploration and Production (PTTEP), based on a press release from the Thai bourse.
SET President Pakorn Peetathawatchai highlighted the project’s potential to expand investment opportunities and facilitate the acquisition of listed securities from the opposite country’s bourse instantly in local currency, according to the SET’s strategic plan. He said…
“The Thai capital market has numerous listed corporations with high potential which might be on the radar of international investors.”
Pakorn additionally noted the importance of the DR launch, as Singapore is a regional investment hub. SGX Group Chief Executive Loh Boon Chye echoed this sentiment. Loh said…
“With higher connectivity between Singapore and Thailand, traders can now widen their investment horizons and take part in the growth potential of Asean.”
The Thailand-Singapore DR Linkage project was first unveiled in September 2021. Investors can trade DRs via securities companies of their home market and native forex, topic to the rules of the country by which the DRs are registered.
Currently, there are 12 DRs listed on the SET, including overseas shares and exchange-traded funds listed on China, Hong Kong, and Ho Chi Minh City bourses. The SET just lately launched two fractional DRs for Nasdaq-listed shares, with Tesla Inc and Apple Inc as underlying securities, to broaden investment alternatives for patrons with a marginal amount to take a position, reviews Bangkok Post..