SGX ADR volume reaches $60m; alternative trading venue draws investors

Interest in ADRs of companies with primary share listings in Hong Kong, accounted for a significant portion of the activity as the cost advantage, convenience and longer trading hours of SGX-quoted ADRs drew investors.

GlobalQuote has a market share of up to 7% versus activities in the primary listing market. The ADRs, meanwhile, was launched on October 22.

For instance, Sinopec Shanghai ADRs volume totaled $4.4 million, equivalent on average to half of that traded in U.S. markets and 4% of its ordinary shares traded in Hong Kong. China Eastern Airlines ADRs volume totaled $4.2 million, equivalent on average to 40% of the turnover traded in U.S. markets and 2% of its ordinary shares in Hong Kong.

Mr Chew Sutat, Head of Securities at SGX said, “This is the one of the fastest take-up of alternative trading platforms seen in Asia. Other platforms have required at least several months for an equivalent level of activity. Investors’ growing interest in the batch of 19 ADRs bodes well for our plans to bring more depositary receipts to GlobalQuote and dual listings to SGX.”