Phillip Securities Pte Ltd announced on Aug, 12 2026 the launch of an unsponsored Singapore Depository Receipts (SDR) programme that will enable investors on Singapore Exchange Securities Trading Limited (SGX-ST) to trade receipts representing shares of companies listed on the Stock Exchange of Hong Kong. The offer relies on the Securities and Futures (Offers of Investments) (Exemption for Depository Receipts) Regulations 2023, and an application for quotation of the SDRs on SGX-ST will be submitted.

Under a deed poll dated Oct, 28 2024, each SDR will correspond to a designated number of underlying Hong Kong-listed shares held by Phillip Securities (Hong Kong) Limited as custodian, while The Central Depository (Pte) Limited will be the registered holder of a master SDR. Investors will receive cash dividends and other distributions in Singapore dollars after conversion, but neither they nor the depository will exercise voting rights attached to the underlying shares.

Key fees include: an issuance charge of up to 5 Singapore dollars per 1,000 SDRs (minimum 50, maximum 1,000) plus 0.30 Singapore dollars per lot of shares; a similar cancellation fee structure; and distribution fees of up to 1% on cash dividends and up to 0.25% on proceeds from asset sales. The depository may revise charges with one month’s notice.

Phillip Securities highlighted that SDRs carry risks such as pricing volatility, potential illiquidity, foreign-exchange exposure between the Hong Kong dollar and Singapore dollar, and the absence of voting rights. The firm cautioned that returns on SDRs may differ from holding the underlying Hong Kong shares directly, and investors could lose their entire investment.