[Finally!?] PSE to Soon Allow Foreign Stocks Trading
![[Finally!?] PSE to Soon Allow Foreign Stocks Trading 1 Photo for the Article - [Finally!?] PSE to Soon Allow Foreign Stocks Trading](https://bitpinas.com/wp-content/uploads/2024/10/PSE-Foreign-Stocks.png)
The Philippine Stock Exchange (PSE) is preparing to launch Global Philippine Depositary Receipts (GPDR), which will allow local investors to diversify their portfolios with foreign stocks, traded in Philippine pesos.
Whatโs the significance: This launch opens up international investment opportunities for Filipino investors, helping them access global markets and hedge against domestic risks.
- It aligns with efforts by the PSE to modernize and expand its offerings, making global diversification more accessible.
Key details:
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- GPDRs are peso-denominated instruments that represent ownership in foreign securities listed overseas.ย
- They allow investors to trade these securities on the PSE without directly holding foreign stocks.ย
- The PSE is seeking public input on draft rules, with issuers needing a minimum capital of P100 million and the securities being freely tradable.
The numbers:
- Issuers must have a minimum capital ofย โฑ100 million and meet specific operational criteria, including custodianship and brokerage arrangements.
- At least 50 holders of the same GPDR type are required, with a total minimum subscription of โฑ30 million.
How it works:
- GPDRs enable investors to hold a stake in foreign companies, but they donโt grant voting rights.
- Investors can buy and sell GPDRs on the PSE and have the option to convert them into shares of the foreign company.
Through GPDR, PSE aims to attract more foreign investors and improve access to global markets for locals.
Key quote:
โThe exchange intends to launch GPDR. The listing and trading of GPDR are intended to provide local investors investment opportunities outside the Philippine market and allow them to build a globally diversified portfolio through GPDR.โ
Philippine Stocks Exchange statement
What to watch:
- The success of the GPDR program will depend on whether it is easy for investors to structure, offer, and trade these products on the PSE.
- The finalization of rules and investor response will be key indicators of the programโs viability.
Worth reading: Last month, PSE issued a warning against a fraudulent cryptocurrency investment scheme falsely using its name and logo, urging the public to exercise caution and avoid the fake website.
This article is published on BitPinas: PSE to Soon Allow Foreign Stocks Trading
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