Citigroup partners with SGX as new depository bank

SGX is enhancing its suite of American Depository Receipts by adding new companies from other Asian countries and partnering a second depository bank.

Initially, the new ADRs to be added are from Focus Media Holdings (China), JA Solar (China) and POSCO (Korea). They will trade on SGX GlobalQuote from this quarter, joining 19 other ADRs from Chinese companies which debuted on GlobalQuote on October 2010.

Citigroup is the latest depository bank brining ADRs onto GlobalQuote, joining BNY Mellon which acted for the pioneer batch of 19 ADRs. Since the ADRs launch, GlobalQuote has achieved total turnover of $3.4 billion.

Mr Magnus Bocker, CEO of SGX said, “We are offering wider investment selection to our investors who have responded positively to the successful launch last October. By the end of the first quarter, GlobalQuote will offer a pool of the largest and most liquid securities in Asia, equivalent to more than a third of the companies in the benchmark MSCI Asia APEX Index which tracks Asia’s top 50 companies.”

Ms Nancy Lissemore, Global Head of Citigroup’s Depositary Receipt Service said, “Capitalising on our market leadership in depositary receipt services, Citi is delighted to partner SGX to facilitate the trading of selected depositary receipts on the GlobalQuote platform. We believe this will enhance liquidity and assist issuers in gaining access to new investors and the capital pool in the Asian Pacific region.”

Mr Michael Cole-Fontayn, CEO of BNY Mellon Depositary Receipts said, "We are delighted to partner SGX again on the innovative GlobalQuote platform after launching together last October. SGX GlobalQuote has allowed major Asian corporations to expand their shareholder base within Asia and enjoy even more liquidity in their local time zone. The positive effect on the initial 19 companies is apparent with over 4 million additional ADRs traded to date. We look forward to bringing even more ADRs from Asian companies to SGX's successful venue."