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  • J.P. Morgan releases Asia Pacific Year in Review 2011 depositary receipt report (selected)

J.P. Morgan releases Asia Pacific Year in Review 2011 depositary receipt report

Feb 22, 2012

China and India will continue to dominate regional depositary receipt (DR) capital raising activities in 2012, with strong market fundamentals and robust growth forecasts creating stable capital raising environments for domestic companies seeking to tap off-shore markets, according to J.P. Morgan’s “Asia Pacific Year in Review 2011” DR report.

The report, which looks at key trends observed over the past year and provides an outlook on the coming 12 months, highlighted China and India as two markets expected to lead the way regionally, with Taiwan to round out the top three most active markets.

Highlights for 2012 mentioned within the report include:

  • Asia Pacific is expected to be the most active region globally. In addition to China, India and Taiwan, we may also see deals from Vietnam and Mongolia over the next 12 to 18 months.
  • HDRs will continue to develop as an alternative to American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”), with multinational companies with large existing sales operations in Asia, and those that would like to tap a growing pool of liquidity in Asia, seeking to list on the Hong Kong Stock Exchange.
  • Continued growth in unsponsored programs is likely. In 2011, 74 Asia Pacific unsponsored programs were created as compared with 52 in 2010 – this trend will continue.
  • Obstacles to growth in relation to the region’s DR sector include continued uncertainty surrounding Europe, among others.

Key highlights from 2011 include:

  • 39 issuers raised US$5.9 billion via DR IPO or follow-on offerings, compared with 93 issuers raising US$7.9 billion in 2010.
  • 66 Asia Pacific issuers from 11 countries created new sponsored DR programs during 2011, increasing the total number of sponsored Asia Pacific DR programs to 1,087.
  • Asia Pacific DR trading volume reached a record high increasing 11% to 40 billion DRs in 2011, with the value of Asia Pacific DRs traded in 2011 growing 9.6% to US$967 billion.
  • The Greater China region dominated with a 75% market share of Asia Pacific DR IPO capital raised in 2011.
  • Two landmark HDR deals were brought to market in 2011: SBI Holdings from Japan and Coach, Inc. from the U.S.
  • The semiconductor, internet and alternative energy sectors were the most active for Asia Pacific DR trading both in terms of volume and value.
  • HDRs will continue to develop as an alternative to American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”), with multinational companies with large existing sales operations in Asia, and those that would like to tap a growing pool of liquidity in Asia, seeking to list on the Hong Kong Stock Exchange.

To view the full J.P. Morgan “Asia Pacific Year in Review 2011” report, please visit http://www.jpmorgan.com/visit/2011apacdryir. For market information on DRs and international equities go to J.P. Morgan’s award-winning web site www.adr.com. For more information on J.P. Morgan’s DR services, please visit http://www.jpmorgan.com/visit/adr.

 
 

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