How do I invest in bluechip Asian stocks

Most Asian bluechip stocks will either:

• have an ADR that trades on a major US or European exchange, or;
• will have a listing in an accessible market like Hong Kong or Singapore.

What are ADRs?

American Depository Receipts were introduced by JP Morgan to allow American investors access foreign markets. ADRs are traded as if they were stock and are as liquid as stock. Each ADR is matched to an ordinary share on a foreign exchange and managed by a major investment bank (the depository) like JP Morgan. When an investor buys an ADR, the depository buys the equivalent stock. The price of an ADR is therefore always directly linked to the stock price. Dividends paid to the stockholder are passed to the ADR holder.

ADRs are regulated in the same way as stocks and shares in domestic markets, so investors can trade with confidence. The SEC recently stepped up its regulation of ADRs to emphasize its attention to high standards of governance.

A list of all ADRs is available at adr.com

Fully Accessible Asian Stock Markets

While access to markets like Shanghai and Shenzhen can be closed to some foreigners, some markets are accessible by many ordinary stockbroking accounts.

The typical stockbroking account in America, Europe or Australia gives access to markets like Hong Kong, Singapore and Tokyo. Many Asian bluechips have their stock listed on these markets, giving us direct access to stock trades.

How do I find out which bluechips have ADRs or are traded on an accessible Stock Market?

Asian Business Daily has a database of Asian bluechips by sector showing which have ADRs and which are traded on accessible exchanges.

List of Asian Bluechip stocks that can be traded as ADRs or through accessible stock markets

Please note that Asian Business Daily does not offer advice on which stocks to trade in. Please consult your regulated financial advisor.