SGX signs Philippine deal to boost Asian dual listings as US shares struggle
Singapore Exchange (SGX) has signed an agreement with the Philippine Stock Exchange to explore depository receipts, ETFs and derivatives, as the bourse struggles to attract volume for locally listed US stocks. CEO Loh Boon Chye said closer regional links can make opportunities more accessible.
Singapore Exchange (SGX) said on Thursday it has signed an agreement with the Philippine Stock Exchange to explore a range of offerings, including depository receipts, as it struggles to attract trades for locally listed US stocks.
The exchange operators will explore offering products including depository receipts, exchange-traded funds built around investment themes similar to both markets, and derivatives, SGX said in a statement.
The city-state has struggled to attract investor interest for US stocks listed through its Singapore Depository Receipts program, with rival products and wary investors keeping volumes extremely low. SGX already offers depository receipts of Thai, Hong Kong and Indonesian stocks.
“Closer links between our markets can make that opportunity more accessible, while giving companies more avenues to reach capital and investors across the region,” said Loh Boon Chye, chief executive officer of SGX.