What are Singapore Depository Receipts (SDRs)?
If you are an investor of Alibaba and Nio on the New York Stock Exchange, you might be familiar with American Depository Receipts (ADRs).
ADRs allow investors in the US stock market to buy shares of non-US companies easily, by issuing the ADRs through an American bank or broker.
Singapore Depository Receipts (SDR) are a new product on the Singapore Exchange with the same objective allowing investors in the Singapore stock market easy access to stocks that are listed in overseas exchanges.
By investing in a SDR, you will be able to gain access to an underlying stock which is currently listed on an overseas exchange.
What this means is that rather than having to buy the stock through an overseas stock exchange, you will be able to do it on the Singapore Exchange (SGX).