From 6 August 2025, Singapore Exchange (SGX) will list two new Hong Kong-linked Singapore Depository Receipts (SDRs): CATL (HCCD), the world’s largest lithium battery maker, and Pop Mart (HPPD), China’s largest pop toy company. These listings allow Singapore investors to tap into electric vehicle (EV) and consumer trends with bite-sized minimum investments from around S$200, traded in Singapore dollars with no foreign exchange (FX) or custody fees. SDRs continue to gain traction, with total turnover reaching S$5.4 million in July 2025 and total assets under management (AUM) surpassing S$140 million.
The Singapore Exchange (SGX) is expanding its Singapore Depository Receipts (SDRs) offering, adding two new Hong Kong-linked names from 6 August 2025 — CATL (HCCD) and Pop Mart (HPPD). This move deepens the exchange’s thematic coverage of electric vehicles (EVs) and consumer trends, sectors that have seen explosive growth in recent years.
For many Singapore investors, buying Hong Kong shares directly comes with hurdles — high minimum lot sizes, FX fees, and overseas custody costs. SDRs solve this by allowing trading in SGD, with minimum investments starting at S$196–S$226 for the new entrants, compared to over S$6,000 for their Hong Kong-listed shares.
CATL
Pop Mart
SDRs have been one of SGX’s fastest-growing products since their October 2024 launch. In July 2025 alone, SDR turnover hit S$5.4M, with AUM exceeding S$140M. Demand is driven by three factors:
| Benefit | What It Means for Investors |
|---|---|
| Bite-Sized Investing | Small entry amounts allow retail investors to diversify into foreign markets without committing large sums. |
| Trusted SGX/CDP Platform | Trades are settled in SGD, with dividends paid in SGD and holdings custodised in CDP. |
| Cost Effectiveness | No FX charges, no custody fees for direct CDP accounts, and competitive brokerage rates. |
SGX’s SDR line-up now covers around 50% of the Hang Seng Index (HSI) by weight, alongside Thai blue-chips in the SET50 index. Investors can now express sector views without managing multiple overseas accounts.
The addition of CATL and Pop Mart SDRs could be significant for portfolio diversification.
1. What is an SDR?
An SDR is a security traded on SGX that represents shares in a foreign-listed company. It allows investors to gain exposure to overseas companies without trading on foreign exchanges.
2. How is the SDR price determined?
It’s based on the overseas share price, adjusted by the SDR conversion ratio and prevailing FX rate. Example: If a share trades at HK$480, FX rate is 0.17, and ratio is 10:1, the SDR price is about S$8.20.
3. Are there extra fees for holding SDRs?
For direct CDP accounts, there are no FX charges or custody fees. Usual brokerage commissions apply.
4. Can I convert SDRs into the underlying Hong Kong shares?
Yes, SDRs are fungible with the underlying shares, though conversion may incur fees and is subject to broker processes.
5. How liquid are SDRs?
Liquidity has been increasing — top-traded names like Alibaba and BYD average over S$0.5M daily turnover.
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