SINGAPORE (Reuters) – Singapore Exchange (SGX) said on Tuesday that it will start trading structured certificates this month, making it the first in Asia to list the third-party issued financial instruments that are commonly traded in Europe.
The first issue of the structured certificates is a yield enhancement product linked to Chinese tech giant Alibaba Group with an autocall feature, according to SGX in a statement.
It will be listed on August 30, SGX said. Societe Generale is the issuer, with UOB and UOB Kay Hian as the primary distributors, according to SGX.
“Investors’ appetite for listed structured products has grown and there is strong demand for more options that offer both risk management and enhanced returns,” said Michael Syn, senior managing director and head of equities at SGX.
The launch comes as Singapore has been benefiting from strong inflows from wealthy customers amid global uncertainty, including U.S.-China geopolitical tensions, because of the city-state’s status as a financial safe-haven.
(Reporting by Yantoultra Ngui; Editing by Sharon Singleton)