A unified trading platform comprising three Southeast Asian exchanges will not have an adverse effect on foreign investors’ willingness to invest in Taiwan, Taiwan Stock Exchange Corp (TWSE, 台灣證交所) chairman Schive Chi (薛琦) said yesterday.
Speaking on the sidelines of the annual meeting of the World Federation of Exchanges in Taipei, Schive said the new platform would primarily benefit brokers in the six major ASEAN member countries.
“I don’t think it will have any impact,” Schive said when asked about whether the “ASEAN Trading Link” would affect foreign investment in Taiwan.
“Foreign investors have already had the chance to invest in those ASEAN countries,” he said. “The biggest beneficiaries of the new platform are investors in those countries. Foreign institutional investors don’t need it.”
Schive’s remarks came as ASEAN Exchanges, a collaboration of ASEAN member countries’ stock exchanges, announced yesterday that the Thailand Stock Exchange had become the third member to be connected to the ASEAN Trading Link.
The ASEAN Trading Link is a network that allows connected brokers to execute trades directly without having to be licensed in that market by that exchange.
Bursa Malaysia and Singapore Exchange were the first two exchanges to be connected to the ASEAN Trading Link last month, according to ASEAN Exchanges.
Together, the three markets offer investors easier access to more than 2,200 listed companies with a market capitalization of US$1.4 trillion, ASEAN Exchanges said.
ASEAN Exchanges is a collaboration of seven exchanges from six countries — Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam.