FTSE Group adds Taiwan to its list

BIG MONEY Although it will be at least 2006 before the nation could be accorded developed market status, the Watch List move will attract foreign capital

By Amber Chung / STAFF REPORTER

MSCI decided in June to revise the Limited Investability Factor currently applied to its Taiwan Index by two steps.

The first revision would occur on Nov. 30, when MSCI will change the weighting of its Taiwan Index from 55 percent to 75 percent. The final revision will be on May 31 next year, when the weighting of the Taiwan Index will be removed and the benchmark will fully reflect the listed prices of Taiwan's securities.

MSCI's move is expected to attract foreign investments in Taiwan's stocks ranging from a conservative total of US$2 billion to a hefty US$70 billion.