ADR trading in Singapore of 19 major Chinese companies from next month may further boost interest in S-chips, says Kim Eng Securities, according to Dow Jones.

“We think this will draw more attention to the Chinese companies already listed in Singapore, much like how Super Group, Oceanus and Yangzijiang have been in the spotlight in recent months following their successful TDR listings,” says Kim Eng, adding while there are no clear comparables between these ADRs and S-chips, “what’s clear is that Chinese companies are making waves internationally and investors are showing strong demand for their equity.”

Broker notes ADRs of those 19 companies trade at respective average 2011-2012 P/E of 23x, 18x vs only 11x, 8x for S-chips; “the growing maturity and development of the segment will eventually narrow this gap.”

Nineteen companies include PetroChina, China Mobile, Baidu, Yanzhou Coal, Sinopec Shanghai.