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Treasury & Capital Markets
Singapore-Thailand DR project targets Asean-wide linkage
Collaboration seen as a first step towards integrated exchange market in the region
The Asset 27 Nov 2023

A collaborative project connecting the stock exchanges of Singapore and Thailand seeks to expand investment links across the Asean region.

Called Thailand-Singapore DR Linkage, the project allows investors to access securities from both countries via depositary receipts. “The Thailand-Singapore DR Linkage is the first exchange-level DR cooperation in Asean, facilitating Thai investors to access Singapore securities directly via Thai stock exchange in local currency using their existing trading accounts, and vice versa,” says Stock Exchange of Thailand (SET) president Pakorn Peetathawatchai during an event celebrating the collaboration in Bangkok on Monday (November 27).

“This marks the first milestone in our 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,” Pakorn notes.

Singapore Exchange (SGX) Group chief executive officer Loh Boon Chye expresses the same hope. Speaking in the same event, Loh says: “Singapore and Thailand have blazed a trail for closer collaboration between exchanges in this region.  With exchanges working together, we can draw more investments into Asean which is set to become the world’s fourth largest economy in 2030.”

SET and SGX began the exchange-level DR cooperation in 2021. So far three DRs on Thai securities – Airports of Thailand (AOT), CP All  (CPALL), and PTT Exploration and Production (PTTEP) – are already trading on SGX and, in turn, a DR on Singapore Airlines (SIA) debuted on the Thai stock market in September 2023. There are plans to launch more DRs on Singaporean securities.

Currently, SET has 18 DRs with underlying securities listed on SGX, Hong Kong Exchanges and Clearing Limited (HKEX), Ho Chi Minh Stock Exchange (HOSE) and the Euronext. There are also five fractional depositary receipts (DRx).

The total market capitalization of the DR and DRx at the end of the third quarter of 2023 amounted to 17 billion baht (US$484 million), a 28%  increase from the same period last year.

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