SINGAPORE: On Tuesday, Nov 28, the Stock Exchange of Thailand (SET) and the Singapore Exchange (SGX Group) joined forces to advance the Thailand-Singapore DR (depositary receipts) Linkage project, the Bangkok Post reports. This collaboration marks the first exchange-level DR cooperation in the ASEAN region, aimed at enhancing access and efficiency for investors in both countries.
Singapore Embassy in Bangkok posted their congratulation on Facebook, saying, “Our warmest congratulations to the Stock Exchange of Thailand (SET) and Singapore Exchange (SGX Group) on the official launch of the Singapore-Thailand depositary receipts (DR) linkage project on 27 November 2023.”
Under the Thailand-Singapore DR Linkage initiative, depositary receipts representing shares in SGX-listed security will be available for trading on the SET and vice versa. This step facilitates investors in Thailand and Singapore, streamlining the buying and selling of securities through local brokers in their respective currencies.
Mr Pakorn Peetathawatchai, the president of the SET, expressed enthusiasm about the collaboration, stating, “The Thailand-Singapore DR Linkage is the first exchange-level DR cooperation in ASEAN, bringing investors enhanced access and efficiency to the region’s securities markets.” He emphasized that this initiative is a crucial milestone in the journey towards a more integrated and accessible ASEAN exchange market. He added, “This marks the first milestone in the journey towards a more integrated and accessible Asean exchange market, enabling investors to trade Asean stocks via DR seamlessly across the entire region.”
Investors will now have the opportunity to trade ASEAN stocks seamlessly across the entire region. Mr Pakorn affirmed the SET’s commitment to fostering bilateral relationships with other exchanges in ASEAN to develop the DR linkage. “We will continue to foster bilateral relationships with other exchanges in Asean to support the development of DR linkage.”
Loh Boon Chye, the chief executive of the SGX Group, highlighted the successful implementation of the DR linkage, stating, “SGX is delighted that its DR linkage with SET has successfully seen three SET-listed underlying DRs and one SGX-listed underlying DR introduced on SGX and SET, respectively, with more in the pipeline.”
In addition, Mr Loh noted, “I look forward to deepening our relationship with the SET and unveiling more products through this link so we can unlock more opportunities for investors.”
The collaboration, which began in 2021, has already witnessed the trading of three DRs on Thai securities, namely Airports of Thailand (AOT), CP All (CPALL), and PTT Exploration and Production (PTTEP), on SGX. In return, a DR on Singapore Airlines (SIA) debuted on the Thai stock market in September 2023.
Looking ahead, the SET plans to launch additional DRs on Singaporean securities, further expanding investor choices. Presently, the SET boasts 18 DRs with underlying securities listed on SGX, Hong Kong Exchanges and Clearing (HKEX), Ho Chi Minh Stock Exchange (HOSE), and Euronext.
Additionally, there are five fractional depositary receipts (DRx), with the total market capitalisation of DR and DRx reaching 17 billion baht by the end of the third quarter of 2023, equivalent to US$484 million or around S$650 million. This figure reflects a significant 28% year-on-year increase, underscoring the growing interest and confidence in the evolving ASEAN financial landscape.
/TISG