Global depositary receipts (GDRs) are rapidly overtaking American depositary receipts (ADRs) as issuers’ preferred means of accessing global capital markets.
According to a report from JPMorgan Depositary Receipts Group , 2007 will see GDRs clearly dominate their American counterparts for the first time, due in part to increased reporting and compliance regulations for global issuers stemming from the US Sarbanes-Oxley Act. After a record year for depositary receipts overall in 2006, in which trading volumes grew 22 per cent to 57 billion shares and trading value rose 58 per cent to almost $1.7 billion over 2005, JPMorgan expected the depositary receipt market to grow larger again in 2007. It predicted a “;shift in gravity in DR markets to the south and east”;, with the four burgeoning ‘BRIC’ economies dominating new issues.
30/01/2007
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Investments
Some investors are “missing the point” of geopolitical risks by equating them to the disruptions from conflicts and wars, according to GIC chief economist Prakash Kannan, but in reality, geopolitical risk is no longer episodic or peripheral. This means investors need to think harder about inflation and country composition in their portfolio.
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