The Singapore Exchange has outlined plans to launch Singapore Depository Receipts of five Hong Kong-listed mega-cap companies, according to a report by The Business Times on Oct. 30.

Through this initiative, SGX aims to create more opportunities to diversify the portfolio of Alibaba (HKG:9988), Tencent (HKG:0700), BYD (HKG:1211, SHE:002594), HSBC (HKG:0005) and Bank of China (HKG:3988, SHA:601988), according to the report.

Through these SDRs, investors can make lower minimum investment in Singapore dollars, ranging from 2% to 20% of the underlying stocks, the report said.

The SDRs can be traded through local brokers, effectively saving costs on overseas trading, foreign exchange and management fees, according to the report.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)