UPDATE 1-SGX plans trading of Asian companies’ ADRs – sources

* Preliminary ADR list includes Baidu, Netease, Shanda

* ADRs will trade in Asian hours, allow round-the-clock
trade
(Recasts with details of plan)

By Kevin Lim

SINGAPORE, March 3 (BestGrowthStock) – Singapore Exchange (SGXL.SI: )
plans to launch trading of Asian companies’ American Depository
Receipts (ADRs) in coming months in an effort to attract new
investors and boost trading volumes, sources said on Wednesday.

SGX, Asia’s second-most valuable listed bourse, plans to
start with ADRs of Chinese firms before broadening the list to
Indian companies, two sources familiar with the matter said.
They declined to be named because the information was not
public.

The preliminary list of ADRs includes those of U.S.-listed
Chinese stocks such as NetEase.com (NTES.O: ), Shanda Interactive
(SNDA.O: ) and Baidu (BIDU.O: ), according to a draft SGX factsheet
seen by Reuters.

Other ADRs on the list are Suntech Power (STP.N: ), CTrip.com
International (CTRP.O: ), Aluminum Corporation of China (ACH.N: )
and Home Inns & Hotels Management (HMIN.O: ).

The plan to quote the ADRs on SGX is subject to regulatory
approval, the factsheet said.

“It’s something we are working on but we are not able to
share at this stage,” an SGX spokeswoman said.

SGX probably expects to get approval in the next month or
two since it has published and distributed draft factsheets,
one of the sources said.

SGX has been developing and introducing new products in a
bid to narrow the gap with rival Hong Kong Exchanges and
Clearing (0038.HK: ), which attracts many big listings from China
and led the world in initial public offerings last year.

SGX CEO Magnus Bocker told reporters on the sidelines of a
fund management conference on Wednesday the Singapore bourse is
looking at new product offerings such as equity derivatives,
gold and other soft commodities, and contracts related to fuel
oil.

SGX also hopes to clear more trades that currently take
place over-the-counter, he said, as governments and investors
demand greater transparency and lower settlement risk for
trades that take place outside regulated exchanges.

According to the draft SGX factsheet, people who trade the
planned ADRs will be able to keep them in Singapore’s central
depositary, lowering costs for retail investors.

The planned ADRs will trade on SGX during normal Asian
hours and are transferable between depositary accounts in the
United States and Singapore, giving investors the ability to
trade the ADRs around the clock.
Stock Market Today

(Editing by Muralikumar Anantharaman)

UPDATE 1-SGX plans trading of Asian companies’ ADRs – sources