Tue, Apr 21, 2009 - Page 12 News List

Taiwan to cross-list funds on Asian stock exchanges

SPECIAL TREATMENT Fubon Financial Holding Co chairman Daniel Tsai said he hoped China would not treat Taiwanese firms like they were foreign institutions

STAFF WRITER

Taiwan Stock Exchange (TWSE) chairman Schive Chi (薛琦) said on Sunday that the cross-listing of exchange-traded funds (ETFs) on stock exchanges in Taiwan, China and Hong Kong would take place soon, the Chinese-language Economic Daily News reported yesterday.

Schive, one of the Taiwanese delegates attending the Boao Forum for Asia annual conference held in Hainan Province, China, from last Friday to Sunday, said that collaboration between capital markets in Taiwan, China and Hong Kong would involve three steps.

First was the signing of a memorandum of understanding (MOU) on cross-strait financial supervision, Schive said, adding that the TWSE and the Shanghai Stock Exchange had exchanged a draft MOU.

Second was collaboration between stock exchanges in Taiwan, China and Hong Kong, and the cross-listing of ETFs.

And third was the establishment of a trade platform, with each side recommending between 30 and 50 stocks to be traded on it, Schive said.

Schive said the two stock exchanges in Taiwan and Shanghai were in close contact.

“The signing of the MOU across the Strait is expected to take place between the end of this month and the beginning of next month,” Schive was quoted as saying.

He said that Taiwan and Hong Kong had already signed a side agreement to cross-list ETFs and would make an announcement soon. The TWSE’s plan was to introduce the world’s best ETFs, including those listed on the London Stock Exchange and Tokyo Stock Exchange, into the local bourse, he said.

The TWSE will hold a seminar on May 21 in Taipei to discuss measures to facilitate the cross-listing of ETFs in three markets by inviting heads of stock exchanges in Shenzhen, Shanghai, Hong Kong and Tokyo, Schive said.

Meanwhile, Fubon Financial Holding Co (富邦金控) chairman Daniel Tsai (蔡明忠) said on Sunday that he hoped China would not treat Taiwanese financial institutions entering the China market like foreign financial institutions, a Central News Agency report said.

Although it would be impossible to ask the Chinese government to treat Taiwanese financial institutions entering China the same as Chinese firms, Tsai expressed his wish that Taiwanese financial institutions could at least be given a special status because of their origin in Taiwan.

Tsai said that bond markets in Asia were still underdeveloped.

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