Singapore Exchange (SGX) will add eight more American depository receipts (ADRs) to its GlobalQuote board on 18 May. All the ADRs are fungible with those listed in the US and allow investors to manage their exposure to these companies outside of US trading hours.
Their quotation on SGX will give investors the opportunity to manage exposures to these companies during the Asian time zone, when news flow relevant to the companies is likely to occur.
Five of the ADRs are of major Japanese companies including the world's biggest automobile manufacturer, Toyota Motor Corporation. Two of the new ADRs are from major China companies, JA Solar Holdings and Focus Media Holdings, which only have US listings.
The eighth ADR is from a South Korean company, POSCO, one of the world's largest steel makers.
Chew Sutat, head of securities at SGX said, “Our increasingly diverse ADR suite enables customers to manage risk and trade across several time-zones with ease and at competitive cost. Recent market events underline the importance of this flexibility and SGX looks forward to bringing more of such products to customers.”
The programme launched on 22 October 2010 with 19 ADRs, using BNY Mellon as a depository bank; Citi was added as a depository bank in February 2011.