The Stock Exchange of Thailand (SET) has joined hands with Singapore Exchange (SGX Group) to move ahead with the Thailand-Singapore depositary receipts (DR) linkage project.
The SET and SGX Group have further strengthened investment links, expanding opportunities for investors to access securities of both countries via depositary receipts (DR), under the collaborative project called Thailand-Singapore DR Linkage.
"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," said Pakorn Peetathawatchai, president of the SET.
Under the Thailand-Singapore DR Linkage, depositary receipts representing shares in an SGX-listed security will be issued for trading on the SET and vice-versa.
Investors in Thailand and Singapore will benefit from the ease in buying and selling securities via a DR through their local broker arrangements and in their local currency.
"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. We will continue to foster bilateral relationships with other exchanges in Asean to support the development of DR linkage," Mr Pakorn said.
"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," said Loh Boon Chye, chief executive of the SGX Group.
Collaboration between Asean exchanges raises the competitiveness of the region which is essential for its sustained growth. The DR Linkage is a significant milestone that reflects the commitment between SGX Group and the SET to enhance synergies between the two markets.
"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," Mr Loh said.
The SET together with the SGX Group commenced Asean's first exchange-level DR cooperation in 2021.
Under the collaboration, three DRs on Thai securities -- Airports of Thailand (AOT), CP All (CPALL) and PTT Exploration and Production (PTTEP) -- have already been traded on SGX and, in turn, DR on Singapore Airlines (SIA) debuted on the Thai stock market in September 2023.
Moreover, the launch of additional DRs on Singaporean securities is in the pipeline.
Currently, the SET has 18 DRs with underlying securities listed on SGX, Hong Kong Exchanges and Clearing (HKEX), Ho Chi Minh Stock Exchange (HOSE) and the Euronext.
Moreover, there are also five fractional depositary receipts (DRx). The total market capitalisation of the DR and DRx at the end of the third quarter of 2023 amounted to 17 billion baht, equivalent to US$484 million, up by 28% year-on-year.