--- title: Investing in Overseas Blue Chips Without Leaving Singapore via SDRs? description: Learn how Singapore Depository Receipts (SDRs) work, their benefits, risks, and how to invest in overseas stocks like Alibaba, Tencent, and Airports of Thailand directly through SGX image: https://cashchanger.sgp1.digitaloceanspaces.com/p/public/asset/previewimage/thb.jpg --- [Skip to content](https://www.thefinancialcoconut.com/blog/what-are-singapore-depository-receipts#main-content) [![Full\_COlour](https://www.thefinancialcoconut.com/hs-fs/hubfs/Full_COlour.png?width=456&height=80&name=Full_COlour.png)](https://www.thefinancialcoconut.com/) - [Retirement Marketspace](https://retirementmarketspace.thefinancialcoconut.com/) - [Events](https://www.thefinancialcoconut.com/events) Show submenu for Events - [For Investors](https://tfcmysterymeetup.com/) - [For Business Owners & Creators](https://ipcreatorunite.peatix.com/) - [For Salaried Workers](https://www.thefinancialcoconut.com/thought-leadership-series) - [TFC Events](https://www.thefinancialcoconut.com/events) - [Shows](https://www.thefinancialcoconut.com/tfc-shows) Show submenu for Shows - [Wise and Shine](https://www.thefinancialcoconut.com/wise-and-shine) - [The Business Show](https://www.thefinancialcoconut.com/tfc-business-show) - [Chills with TFC](https://www.thefinancialcoconut.com/chills-with-tfc) - [Blog](https://www.thefinancialcoconut.com/blog) Show submenu for Blog - [Work Smart](https://www.thefinancialcoconut.com/worksmart) - [Invest](https://www.thefinancialcoconut.com/invest) - [Retire Well](https://www.thefinancialcoconut.com/retire-well) - [Business](https://www.thefinancialcoconut.com/business) Open main navigation Close main navigation - [Retirement Marketspace](https://retirementmarketspace.thefinancialcoconut.com/) - [Events](https://www.thefinancialcoconut.com/events) Show submenu for Events - [For Investors](https://tfcmysterymeetup.com/) - [For Business Owners & Creators](https://ipcreatorunite.peatix.com/) - [For Salaried Workers](https://www.thefinancialcoconut.com/thought-leadership-series) - [TFC Events](https://www.thefinancialcoconut.com/events) - [Shows](https://www.thefinancialcoconut.com/tfc-shows) Show submenu for Shows - [Wise and Shine](https://www.thefinancialcoconut.com/wise-and-shine) - [The Business Show](https://www.thefinancialcoconut.com/tfc-business-show) - [Chills with TFC](https://www.thefinancialcoconut.com/chills-with-tfc) - [Blog](https://www.thefinancialcoconut.com/blog) Show submenu for Blog - [Work Smart](https://www.thefinancialcoconut.com/worksmart) - [Invest](https://www.thefinancialcoconut.com/invest) - [Retire Well](https://www.thefinancialcoconut.com/retire-well) - [Business](https://www.thefinancialcoconut.com/business) - [Contact us](https://www.thefinancialcoconut.com/contact-us) [Contact us](https://www.thefinancialcoconut.com/contact-us) Aug 12, 2025, 4:47:23 PM # Investing in Overseas Blue Chips Without Leaving Singapore via SDRs? ![Picture of The Financial Coconut](https://www.thefinancialcoconut.com/hs-fs/hubfs/Square%20(2)-3.png?width=50&name=Square%20(2)-3.png) [The Financial Coconut](https://www.thefinancialcoconut.com/blog/author/the-financial-coconut) Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://www.thefinancialcoconut.com/blog/what-are-singapore-depository-receipts) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://www.thefinancialcoconut.com/blog/what-are-singapore-depository-receipts) [envelope icon](mailto:?body=https://www.thefinancialcoconut.com/blog/what-are-singapore-depository-receipts) [Share this page](https://twitter.com/intent/tweet?url=https://www.thefinancialcoconut.com/blog/what-are-singapore-depository-receipts) [![Follow The Financial Coconut](https://no-cache.hubspot.com/cta/default/46975693/interactive-182431637553.png)](https://cta-service-cms2.hubspot.com/web-interactives/public/v1/track/redirect?encryptedPayload=AVxigLL2CjCe42iR2RH2MpVX0Ej%2BKJQ%2F3A0Z7pXnUs35To%2Bo6nbKcpBVq9I98X5NUungVEwfs5YCKuM%2FaP97VxIITkTlihT57%2F%2F4XDW9rT3VR4MatSLDi%2BMU5mbQqihfX3LRRz83ij8K19OiD8UXy8sdct4t0Q%3D%3D&webInteractiveContentId=182431637553&portalId=46975693)   ### TL;DR - **Singapore Depository Receipts (SDRs)** are SGX-listed instruments that represent beneficial ownership in shares of companies listed on overseas exchanges. - They allow Singapore investors to **gain foreign stock exposure**—such as to Hong Kong and Thai blue chips—without opening a foreign brokerage account. - Each SDR is backed by underlying shares held by a custodian and can be converted to and from the original shares. - Currently available for well-known companies like **Alibaba, Tencent, HSBC, Airports of Thailand, Kasikorn Bank**, and more. - Suitable for investors seeking cross-border exposure with **local trading convenience**, but they come with currency and market risks. ![singapore-merlion-park-downtown-singapore-busines-2026-03-18-12-09-52-utc](https://www.thefinancialcoconut.com/hs-fs/hubfs/singapore-merlion-park-downtown-singapore-busines-2026-03-18-12-09-52-utc.jpg?width=777&height=520&name=singapore-merlion-park-downtown-singapore-busines-2026-03-18-12-09-52-utc.jpg) For years, Singapore investors wanting to own foreign blue chips faced the hassle of overseas brokerage accounts, currency conversions, and cross-border trading costs. Now, **Singapore Depository Receipts (SDRs)** make it possible to buy and sell shares of top Hong Kong and Thai companies—right on SGX—using your regular local broker. ## What Are Singapore Depository Receipts (SDRs)? According to SGX, **SDRs are tradable instruments listed on the Singapore Exchange that represent beneficial interest in an overseas-listed security**. - They are issued on an **unsponsored basis** by an intermediary (the SDR issuer) who holds the actual underlying shares in custody. - The issuer appoints a **custodian**, and the shares are held on trust for SDR holders. - Investors can request **issuance** (conversion from shares to SDRs) or **cancellation** (conversion from SDRs back to shares). Importantly, **SDRs are classified as Excluded Investment Products (EIPs)**, meaning they are accessible to retail investors without the complex-product restrictions. [![SGX launches depository receipts through linkage with Stock Exchange of Thailand](https://s.yimg.com/ny/api/res/1.2/BJKmRqApef.DZA50YTppZA--/YXBwaWQ9aGlnaGxhbmRlcjt3PTEyMDA7aD04MDA-/https://media.zenfs.com/en/the_edge_961/6be66b6531ce0f1a5f2c178df0566c60)](https://sg.finance.yahoo.com/news/sgx-launches-depository-receipts-linkage-230423591.html) ## Benefits for Singapore Investors | Benefit | Why It Matters | | --- | --- | | **Local Access to Overseas Stocks** | Trade Hong Kong and Thai companies via your Singapore broker, in SGD or USD. | | **No Foreign Brokerage Account Needed** | Avoid the paperwork and maintenance fees of an overseas trading account. | | **Dividend Pass-Through** | Receive dividends from the underlying company, converted to your settlement currency. | | **Corporate Action Participation** | Participate in rights issues, bonus issues, and other corporate actions. | | **Lower FX Friction** | Trade in your preferred currency without manually handling conversions. | ## ![Alibaba Takes Step Toward Comeback as Growth Finally Returns - Bloomberg](https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iT5VZKJ2JdVs/v1/-1x-1.webp) ## Current SDR Listings on SGX **Hong Kong-listed companies available via SDRs:** - Alibaba Group (HBBD 5:1) - Tencent (HTCD 10:1) - HSBC (HSHD 5:1) - Meituan, JD.com, BYD, Ping An Insurance, Xiaomi, SMIC, CATL, Pop Mart, Bank of China, PetroChina ![Bangkok Post - Plan to transfer state-run airports to Airports of Thailand scrapped](https://static.bangkokpost.com/media/content/20250307/c1_2975258.jpg) **Thai-listed companies available via SDRs:** - Airports of Thailand (TATD 1:1) - Kasikorn Bank (TKKD 1:1) - PTT Exploration & Production (TPED 1:1) - Delta Electronics (TDED 1:1) - CP Foods, CP All, Gulf Development, Advanced Info Service, Siam Cement (SDR ratios indicate how many SDR units represent one underlying share.) ## How SDRs Work in Practice 1. **Issuer Buys & Holds Underlying Shares** – A licensed SDR issuer acquires the foreign shares and deposits them with a custodian. 2. **SDRs Created for SGX Trading** – SDR units are issued to represent beneficial interest in those shares. 3. **Trading on SGX** – You buy and sell SDRs like any SGX-listed stock via your local broker. 4. **Corporate Actions & Dividends** – The issuer passes on corporate actions and converts dividends into your settlement currency. 5. **Conversion Option** – You can request to exchange SDRs for the actual foreign shares (and vice versa), subject to fees. ## ![Best & Cheapest Thai Baht Money Changer rates from Singapore Dollar](https://cashchanger.sgp1.digitaloceanspaces.com/p/public/asset/previewimage/thb.jpg) ## Risks to Consider - **Currency Risk** – Underlying shares trade in HKD or THB; currency fluctuations affect returns. - **Market Risk** – You’re exposed to the performance of the overseas market. - **Liquidity Risk** – SDR trading volume may be lower than in the home market. - **Corporate Action Processing Time** – Corporate events may take longer to process compared to direct ownership. ## FAQ **Q1: Do SDRs have the same price as the underlying shares?** They generally track the underlying share price adjusted for the SDR ratio and exchange rate, but small deviations can occur. **Q2: Can I use CPF or SRS funds to buy SDRs?** As of now, CPFIS and SRS eligibility depends on SGX classification; investors should check with their provider. **Q3: Are there extra fees for SDRs?** Normal brokerage fees apply; some corporate action or conversion requests may incur issuer charges. **This is an AI-powered article, curated by The Financial Coconut.**  Let us know what you think about this topic, and what do you want to hear next. ##### **Sources Consulted:** - [SGX Official SDR Factsheet](https://www.sgx.com/securities/securities-products#Singapore%20Depository%20Receipts) - [SGX SDR Investor Guide](https://www.singaporedr.com/) You can now be our community contributor and make a [pitch](https://thefinancialcoconut.com/contact/)to have your favourite personality be on our show. 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