STI New High: Follow SGX or Bet on High-Potential HK SDRs?

Comments

• MHh

  09-03

  MHh
  I prefer to buy HK stocks directly as I find it more straightforward and have greater liquidity and bid ask spreads which is important for me when I want to trade the stock. Also, I have ready HK dollar in my Tiger account which saves me the hassle of converting.
  
  
  Although I have heard about SDRs, I have yet to fully study about it due to lack of time. I am not familiar with LEAP calls and I would need to study about it too. @Success88 @SR050321 @Kaixiang @LuckyPiggie @HelenJanet @SPOT_ON @DiAngel @Fenger1188 @Wayneqq @Universe宇宙 come join
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• Shyon

  09-03

  Shyon
  For me, I’d rather buy HK stocks directly than SDRs in Singapore. HK offers better liquidity, tighter spreads, and wider coverage, which makes trading smoother. SDRs are convenient for SGX-only investors, but they usually come with lower liquidity and wider spreads, so I see them more as a backup option.

  That said, SDRs are still useful for easy access to big Chinese names like Alibaba, Tencent, or BYD without opening an HK account. If someone trades mainly in Singapore, it’s a simple entry point, but I’d only use them as a complement, not my main exposure.

  As for options, LEAP calls are attractive if you’re bullish long term. With a smaller premium, you get leveraged upside for 1–2 years, though the risk is losing it all if the stock lags. Personally, I’d consider LEAP calls on sector leaders like Tencent or BYD, alongside direct equity to balance risk.

  @Tiger_SG @TigerStars @Tiger_comments
  

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• Tiger_SG

  09-10

  Tiger_SG
  Thanks for participating in discussion.
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• BTS

  09-06

  BTS
  SDRs are a convenient and lower-cost option for retail investors seeking China exposure, while active traders may prefer direct HK stocks for greater liquidity and flexibility

  LEAP calls are a high-risk, high-reward strategy suited to experienced investors who are confident in their market view and not ideal for typical long-term investors

  In general, direct HK stock trading may be the more practical choice for investors seeking better market access and control。。。
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• mpeyeoeh

  09-04

  mpeyeoeh
  I started trading HK option pretty interesting very similar to US option. But got my first shock as the lot size is totally different. Now already get use to cautiously look at lot size before any other things. Happy trading HK here I come....
• Lanceljx

  09-04

  Lanceljx
  Direct HK stocks usually offer deeper liquidity, tighter spreads, and better alignment with China’s economic cycle. However, they carry FX risk (HKD/USD peg) and higher volatility. SDRs in SG provide convenience, SGD settlement, and possibly easier tax handling, but liquidity can be limited, and spreads wider.

  For long-term bullish exposure, LEAP calls on HK names can be attractive due to leverage and capped downside, but risks include: time decay if recovery is slow, regulatory shocks, and low option liquidity. If conviction is very strong and you can tolerate volatility, a barbell approach (core HK equity + selective LEAPs) may balance risk and upside.

  👉 Prudent investors usually mix direct equity (for staying power) with limited derivative exposure (for leverage).

  @Tiger_SG @TigerClub @TigerEvents