The Taiwan Stock Exchange (TWSE) is seeking to create a cross-border stock trading platform with Singapore this year to boost overseas access to its listed shares, chairman Lee Sush-der (李述德) said in an interview.
“Opening access to our shares can benefit us with an active market and dynamic economy,” he said on Tuesday.
Fundraising in the market stood at NT$654.8 billion (US$21.6 billion) last year, Lee said, which allowed companies “to enhance research, expand capacity and eventually bolster the economy.”
The trading platform, for which the Taiwan bourse and Singapore Exchange Ltd are discussing technical issues such as settlement rules, would lower costs for investors, Lee said.
Taiwanese investors in Singaporean stocks currently must buy through both local brokerages and securities firms based in the city-state. Overseas trading through the current mechanism amounted to at least NT$800 billion last year, he said.
“The cross-border platform can provide more choices and help reduce costs for investors, particularly for individuals,” Lee said.
Efforts to establish a cross-border trading platform coincide with another internationalization push by the exchange, the introduction of an index comprised of all the companies listed on the main board and on the GRETAI Securities Market, which has a market capitalization of NT$2.68 trillion, compared with the NT$25.5 trillion capitalization of the Taiwan Stock Exchange.
Sub-indices and other related products are being planned for the gauge, to be called the Formosa Index, which is to be introduced on May 5, Lee said.