The Depositary Receipt (DR) market in Thailand is experiencing a significant expansion, driven heavily by global artificial intelligence megatrends, according to the latest research by Finansia Syrus Securities (FSS).
The brokerage highlights a strategic rotation among investors who are increasingly moving away from Chinese technology stocks to favor Western and global tech companies.
AI Infrastructure Booms While Chinese Tech Lags
FSS reports that the Thai DR market continues to grow steadily, with 31 new DRs scheduled to list in June 2026. This influx will push the total number of DRs available in the Thai market to approximately 410 securities by the end of June. The new listings span major global megatrends, including AI infrastructure, semiconductor manufacturing equipment, healthcare, space technology, and US government bonds.
Recent performance data clearly indicates that AI remains the market’s dominant investment theme. DRs tied to memory chip manufacturers and AI infrastructure have seen prominent gains, fueled by continuous global investment in AI expansion.
Conversely, Chinese tech stocks suffered the sharpest declines. This comes as corporate earnings from developed markets heavily outpaced those in China, prompting capital to flow toward markets with stronger and more distinct profit growth trends.
Market Performance: Western Winners vs. China Losers
The report highlights a stark contrast in monthly performance between top-performing Western/global tech assets and lagging Chinese equities.
Instead of looking at a traditional chart, the shift is highly evident when looking at individual stock performances over the past month:
- The Gainers: Leading the positive momentum, Lenovo skyrocketed by 70.5%, followed closely by semiconductor and tech heavyweights like Kioxia at 68.3%, Dell at 60.5%, and Marvell (MRVL) at 55.0%. Other strong gainers included SanDisk (SNDK) rising 36.1% and Micron up 28.4%.
- The Losers: On the flip side, major Chinese tech giants faced heavy losses, with Alibaba (BABA) dropping 19.8%, Baidu (BIDU) falling 18.3%, and Xiaomi shedding 17.4%. The downward trend was further underscored by sharp drops in other Chinese tech-related names, such as JD Health collapsing by 20.5% and data center operator GDS plunging 25.6%.
FSS Strategy: Cautious Optimism Amid Lower Energy Risks
Looking ahead into the June–July period, Finansia Syrus recommends a strategy of “Cautious Optimism,” advising investors to gradually and carefully add risk to their portfolios. Finansia Syrus wrote that an agreement between the US and Iran has successfully mitigated global energy risks. Consequently, the brokerage company has turned more positive on risk assets, with a specific focus on sectors benefiting from lower energy costs, as well as broader Asian and emerging markets.
However, the brokerage also advises maintaining a portion of portfolios in alternative assets and low-beta global stocks. This defensive positioning is intended to cushion against potential volatility or renewed regional tensions should future nuclear negotiations between the U.S. and Iran face hurdles.
