2021 Industry Index Performance

For details, please visit https://www.sgx.com/indices/products/sti

Our Singapore-domiciled affiliate, Phillip Securities Pte Limited established in 1975. It is a financial institution licensed by the Monetary Authority of Singapore, a SGX securities trading member and a CDP securities member.

Moreover, its professional research team covers a number of sectors, e.g. Banking & Finance, Property & REITs, Consumer, Industrial, Conglomerates, Small-Mid Cap, Technical Analysis.

As a result, Phillip Securities (Hong Kong) Limited has a number of advantages over peers:

1. Competitive online commission
2. Stock margin facility with financing ratio up to 80%, more on ratios
3. Support three settlement currencies (trading currency, HKD and USD), client is hassle-free for conversion
4. Low SGD and USD margin interest rates (4.25% p.a., i.e. SCB HK$ Prime Rate - 1% within promotion period)
5. Research Reports (e.g. Banking and SREITs monthly update)
6. Straight-through Processing (STP) technology to handle your orders -Speedy to the Exchange without our manual handling
7. Real-time streaming Level 1 price quote subscription service, please go to our data vendor CyberQuote (HK)
8. Support both online, Apps and phone order channels
9. Support Block Trade / Married Deal trade (by offline channel, subject to our due diligence exercise and minimum order value/quantity). The special service is particularly useful when order quantity is significant in terms of a counter’s average daily traded volume.
10. Support to deposit physical share certificate (with conditions, handling fees and other charges, on a case-by-case basis)

Account Opening Procedures

Please click here to open account online.

Trading Session

http://www.poems.com.hk/en-us/product-and-service/global-securities/trading-session/

Board Lot

The standard board lot size is 100 units. However, certain products (e.g. some Exchange Traded Funds (ETFs) = 5/10/100, American Depository Receipts (ADRs) = 10, and fixed income instruments 10/100/1000) may trade in other board lot sizes. Odd lot board is available for selling shares less than 1 board lot. The final execution price may be far below board lot’s price.
Odd lot order is accepted by phone order only. Please call foreign stock dealing hotline at +852 2277 6678 to place order (online channel is not available) and check order status. Please note that order brokerage and fee consolidation is NOT available for online board lot and odd lot orders because odd lot order is man-assisted.

Price Spread and Input Limit

Stocks, REITs, business trusts, company warrants

For price spreads of forced order range of Structured warrants and daily leverage certificates, Exchange traded funds and exchange traded notes, Debentures, bonds, loan stocks & preference shares, Securities denominated in Hong Kong Dollar, Securities denominated in Japanese Yen, please refer to the Minimum Bid Size section on SGX’s website.
Even though the forced order range is an alert of SGX’s pre-execution mechanism, our company does not accept order whose input price is beyond the range.

SGX Code "SingID" vs Phillip's Stock Code

SGX assigns a designated stock code “SingID” to each counter, for instance, S68 for Singapore Exchange Limited. It is different from Phillip’s stock code and Bloomberg ticker, SGX.SG and SGX SP respectively.

How to search Phillip’s stock code for order input with SGX’s SingID ?

1. Click here
2. Search "ISIN Code Download Link" and click the file underneath
3. Search the "SingID" on web page, the subject "SingID" should be highlighted in the second rightmost column
4. Confirm the target counter with the first column "NAME" or the third column "ISIN CODE".
5. Copy the data (except symbol) in the last column "TRADING COUNTER NAME"
6. In our foreign stock trading platform, click "Search Stock Code" button, then paste the copied "TRADING COUNTER NAME" in search cell, then press "Search"

Circuit Breakers

SGX’s dynamic circuit breaker in the securities market guards against disorderly situations in the face of rapid and unchecked market movements. It gives investors time to assimilate incoming information and make informed choices during periods of high market volatility.

The circuit breaker covers:

1. Straits Times Index component stocks/units;
2. MSCI Singapore Index component stocks/units;
3. The following products with a first reference price at or exceeding $0.50 - i) Stocks/units; ii) Stapled securities; iii) Funds; iv) Exchange traded funds; v) Exchange traded notes

How it works

1. The circuit breaker is activated when an incoming order could potentially match an existing order in the order book at a price outside the circuit breaker price bands.
2. When this occurs, a five-minute cooling-off period is triggered, the incoming order is rejected and will not be matched at a price outside the price band. During the cooling-off period, trading can still take place within the price bands. All existing orders will not be affected and new orders can continue to be placed in the order book as long as they do not result in the potential matching of trades outside the price band. If there are no trades done during the cooling-off period, the first trade after the cooling-off period will not be subject to the circuit breaker.
3. The price band comprises of an upper and lower price limit based on a deviation of 10% from the applicable reference price. Trades at or within the limits will not activate the circuit breaker.
4. The dynamic reference price during continuous trading is the last traded price as of five minutes prior to each potential trade. If no trades were executed in the trading day’s continuous matching phase, the dynamic reference price will be the trading day’s first reference price. If the circuit breaker is triggered and no trades are done during the cooling-off period, the price of the first trade will serve as the reference price for the five minutes following the trade.
5. In operation during the continuous trading phase to allow for efficient and accurate price discovery, the circuit breaker is not applicable during the following sessions: i) Opening routine; ii) Mid-day break; iii) Closing routine; iv) First trading day of newly listed instruments.

For detail, please refer to SGX’s "Regulatory Notice 8.14.1 - Circuit Breaker"

Order Type

We accept Limit Order with Day validity and Good-Til-Date.

To place Good-Til-Date order whose maximum is 30 calendar days, please:

1. read "Guidance Notes on Good-Til-Cancel (GTC) and Good-Til-Date (GTD) Orders" section of Important Notes and
1)
2. call Foreign Stock Dealing Hotline +852 2277 6678 to place phone order.

Trading Currency

The majority of SGX counters are denominated in SGD. SGX supports dual or tri trading currencies for some counters. Counter in each currency has its own SingID and stock name for trading and postion. According to our observation, dual-currency counters are mostly ETFs, S-REITs, business trust and stocks. Other trading currenices are USD, HKD, EUR, GBP, AUD and RMB. Example of tri-currency counter is NIKKOAM-ICBCSG CN BD ETF，trading currencies are SGD, USD and RMB. Please note that we do support to sell a counter in another trading currency after buying it in a currency.

How to know a trading currency of counter?

There are 2 ways:

1. On our foreign stock trading platform, after inputting stock code, the currency field returns its trading currency.

2. On SGX web page, the last string of trading name and trading counter name indicates trading currency.

Share borrowing or Short-selling

These services are not available.

Commission

Please click here for commission details.

Depository Information

Please click here for depository steps and related depository bank account information.

Real Estate Investment Trust “REIT, Business Trust “BT”and Exchange Traded Fund “ETF”are SGX’s popular securities products among investors. High yield of REITs and business trusts are really appealing, REIT and property trusts have average dividend yield of 6.1%＃, higher than Straits Times Index’s 3.2%＃and Singapore’s fixed term deposit interest rate 2.3%^＃.

Real Estate Investment Trust (Real Estate Investment Trust, REIT)

REIT is a one of collective investment scheme, its objective is to provide investors with regular income by focusing on income-generating real estate asset situated in Singapore and/or overseas. Those REITs listed on SGX are commonly called “S-REITs”. S-REITs are entitled to tax benefit given by Inland Revenue Authority of Singapore with conditions. For the tax benefit, S-REITs have distribution policy that has to regularly pay out at least 90% of annual taxable income to unitholders after deducting manager’s annual fee, property management fee, trustee fee and other expenses. Whereas the dividend policy of property stocks is based on investor relationship and expectation management. Other securites relating to real estate trust are Property Trusts and Stapled Trusts, the latter is a hyrid product of REIT and property trust. While the Monetary Authority of Singapore (MAS) has raised the leverage limit for S-REITs from 45% to 50%, to provide S-REITs with greater flexibility to manage their capital structure amid the challenging environment to ease the impact of COVID-19, the average leverage ratio was still 37.2%.^＃

According to data^＃ in January 2022, there are 44 S-REITs and property-related business trusts listed in SGX, reaching aggregate market capitalization of SGD 115 billion and accounting for 13% of Singapore securities value, average daily traded value in 2021 was around SGD 283 million. In fact, the geography location of assets underlying S-REITs has been beyond Singapore, 80% of S-REITs have overseas properties, in China, Japan, Malaysia and South Korea, also in US, UK and Europe. Range of asset types are also very wide, diverisfied, industrial, retail, office, hotel residence, data centre and health care premises. There are 2 REIT indices - FTSE ST REIT Index and iEdge S-REIT Index. The total return of the form was 166.7% in 10 years. Their correlation ratio with equity and bond assets ranged 0.67 and 0.79. In 2021, S-REIT and property business trusts complete or proposes about 51 asset aacquistions.

Apart from investing in S-REITs, REIT ETFs are options.

1) 2 REIT ETFs whose assets are 100% invested in Singapore:

• i) Lion-Phillip S-REIT ETF (LPSREIT.SG)
• ii) CSOP iEdge S-REIT Leaders ETF (SGD CSRTS.SG / USD CSRUS.SG). Both have 28 S-REITs, make distribution every 6 months, and have AUM of SGD 241 million and SGD 115 million respectively.^＃

2) 3 REIT ETFs which have overseas real estates. They have trading currencies in SGD and USD.：

• i) Phillip SGX APAC Dividend Leaders REIT ETF (SGD PHAPS.SG /USD PAREIT.SG), Australia is key location, followed by Singapore and Hong Kong. It holds 31 REITs and make distributin every half year.
• ii) NikkoAM-StraitsTrading Asia Ex Japan REIT ETF (SGD NASR.SG / USD NKSTA.SG), primarily in Singapore, then Hong Kong, India and Malaysia. It holds 44 REITs and makes quarterly distribution.
• iii) UOB Asia Pacific (APAC) Green REIT ETF (SGD UGRNS.SG / USD UGRES.SG), the weights in Japan and Australia are almost the same, then Singapore and Hong Kong. It holds 50 REITs and makes quarterly distribution.

SGX’s web pages have rich and useful S-REIT information, e.g Securities Prices , Chartbook: SREITs & Property Trusts

Remark: ^# Info source - SGX Research’s Chartbook: SREITs & Property Trusts - January 2022

Business Trust (BT)

Business Trusts are business enterprises set up as trusts, instead of companies. They are hybrid structures with elements of both companies and trusts. Like a company, a business trust operates and runs a business enterprise. But unlike a company, a business trust is not a separate legal entity in that the trustee of the business trust is regarded as the legal owner of the assets in the trust. Whereas companies are restricted to paying dividends out of accounting profits, trusts do not face such restrictions. In terms of income distribution, business trusts can distribute cash flows to investors in excess of accounting profits and out of operating cash flows. They are suited to businesses involving high initial capital expenditures with stable operating cash flows such as infrastructure and utilities businesses, vehicle leases, charters, hotel operators and etc.

Business trusts can let investors to invest in cash-generating assets, securitize capital-heavy assets in highly liquid and affordable units. In general, business trusts have high payout ratio. When considering an acquision, they have to comply with trustee-manager deed. Trustee-manager employs active approach to lift investment return by business expansion and asset acquisition. Their incentive scheme is in line with unit holders. Key risk in investing business trusts is their assets and investment focuses, e.g. unexpected shortfall in future distribution or uncertain business geography. Examples with relatively higher turnover are NetLink NBN Trust(NETL.SG), ASCOTT RESIDENCE TRUST(ASTT.SG) and Keppel Infrastructure Trust(CSIT.SG)。

Prices of SGX business trusts

What are the differences between a REIT and a Business Trust?

There are three facets;
i) Regulatory Regime: Business Trusts are governed by the Business Trusts Act under a different regime.
ii) Responsible Entity: Business Trusts are premised on a single responsible entity – the Trustee-Manager, whereas in the case of REITs, while the assets are legally owned by the Trustee, they are managed by a separate Asset Manager. As such, the Trustee-Manager of Business Trusts has dual responsibility of safeguarding the interests of unitholders and managing the Business Trusts.
iii) Taxation: While REITs with Singapore assets are tax-transparent investment structure focused on real estate assets, Business Trusts are like corporates, subject to the Income Tax Act.

Exchange Traded Fund(ETF)

The features, functions and categories of ETF are commonly known. The number of SGX-listed ETFs is about 52, some of them have dual currencies for trading. The three with relatively high turnover are SPDR® Straits Times Index ETF (SGD STIS.SG)、SPDR® Gold Shares (USD GLD.SG) and IS ASIA HYG (SGD ISAHYA.SG/USD ISAHY.SG).

Prices of SGX ETF , ETF Screener

Please note SGX’s stock code is different from Phillip Sec HK's.