The Stock Exchange of Thailand (SET) will launch trading of derivative warrants (DWs) with foreign underlying stocks, starting from Hong Kong stocks as underlying securities namely Alibaba, Tencent, Meituan, Xiaomi, JD.com and Great Wall Motor issued by Macquarie Securities Co., Ltd. to provide investors with more choices to access foreign investment through the Thai stock market. The trading of the first six series of such DWs will start on Dec 16.
SET President Pakorn Peetathawatchai said that SET's strategic move is to introduce new products to broaden alternatives for investors, while further opening up more opportunities to invest overseas conveniently through the Thai stock market. Specifically, the DW with foreign stocks as underlying assets is another cross-border product development that SET and securities companies have initiated to facilitate overseas investment via the Thai capital market. The first batch of the DWs that use foreign stocks will be issued by Macquarie Securities Co., Ltd. and the foreign underlying stocks are in Technology, e-commerce and Automotive sectors listed on Hong Kong Stock Exchange Limited (HKEX).
The trading of DWs on SET has recorded continuous growth. In the first 11 months of this year (from January to November, 2021), a total of 4,807 new series of DWs were launched, up 25 percent from a year earlier. The daily trading value averaged THB 8.58 billion (approx. USD 255.48 million), or a 30 percent year-on-year increase. The total trading of DWs accounts for 9.5 percent of SET's total turnover. Notably, DWs with foreign underlying assets make up 5.5 percent of SET's overall DW trading value.
For additional information, please visit the websites of DW issuers, and SET's website: www.set.or.th/dw.