Taiwan and China are planning to permit trading of each other’s shares for the first time as ties improve.
A so-called trading platform may list as many as 30 stocks from each market, Taiwan Stock Exchange chairman Schive Chi (薛琦) said. Investors are currently restricted from directly investing in each other’s equities. An agreement on the dual listing of exchange-traded funds (ETFs) is also expected this year, he said.
“It will be a step further,” Chi said in an interview on Monday. “Instead of trading exchange-traded funds, it will be trading individual stocks.”
“Investors will definitely be interested” in the cross-trading of China and Taiwan stocks, said Monika Yang, who helps oversee US$10 billion at Hamon Asset Management Ltd in Hong Kong. “Investors have a wider variety of shares to trade in. Chinese investors will want to diversify their investment and this is a good way for Taiwan investors to buy Chinese shares.”
Taiwan is also trying to draw as many as 37 Taiwanese-owned companies listed in Hong Kong back to its exchange, Chi said. A separate agreement on so-called ETFs with Hong Kong may be completed by next month, he said.
Taiwan and China plan to sign an accord on financial services and a cross-currency settlement system, officials said last month. China’s currency isn’t fully convertible, and the country limits foreign ownership of shares traded on its exchanges.
Allowing cross-trading of Chinese and Taiwanese shares may draw investors away from Taiwan, said Jason Huang, a fund manager at Paradigm Asset Management (華頓證券投信) in Taipei, who helps oversee more than US$200 million.
China’s shares are valued at US$2.6 trillion, the world’s third-largest stock market, according to Bloomberg data. Taiwan’s market is worth 20 percent of that, the data show. Daily trading of Chinese stocks averaged at US$22.5 billion in the past six months, compared with Taiwan’s US$2.7 billion.
“If Chinese stocks are traded in Taiwan, there could be a chance investors will choose to buy only Chinese stocks, marginalizing Taiwan shares,” Huang said.
Taiwan’s share rally may have outpaced share value as companies had not seen the benefits of potential links with China, Mark Mobius, who helps oversee US$20 billion in emerging-market assets at Templeton Asset Management Ltd, said earlier this month.
Zhang Yazhou was sitting in the passenger seat of her Tesla Model 3 when she said she heard her father’s panicked voice: The brakes do not work. Approaching a red light, her father swerved around two cars before plowing into a sport utility vehicle and a sedan, and crashing into a large concrete barrier. Stunned, Zhang gazed at the deflating airbag in front of her. She could never have imagined what was to come: Tesla Inc sued her for defamation for complaining publicly about the vehicles brakes — and won. A Chinese court ordered Zhang to pay more than US$23,000 in
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday held its first board of directors meeting in the US, at which it did not unveil any new US investments despite mounting tariff threats from US President Donald Trump. Trump has threatened to impose 100 percent tariffs on Taiwan-made chips, prompting market speculation that TSMC might consider boosting its chip capacity in the US or ramping up production of advanced chips such as those using a 2-nanometer technology process at its Arizona fabs ahead of schedule. Speculation also swirled that the chipmaker might consider building its own advanced packaging capacity in the US as part
‘NO DISRUPTION’: A US trade association said that it was ready to work with the US administration to streamline the program’s requirements and achieve shared goals The White House is seeking to renegotiate US CHIPS and Science Act awards and has signaled delays to some upcoming semiconductor disbursements, two sources familiar with the matter told reporters. The people, along with a third source, said that the new US administration is reviewing the projects awarded under the 2022 law, meant to boost US domestic semiconductor output with US$39 billion in subsidies. Washington plans to renegotiate some of the deals after assessing and changing current requirements, the sources said. The extent of the possible changes and how they would affect agreements already finalized was not immediately clear. It was not known
A move by US President Donald Trump to slap a 25 percent tariff on all steel imports is expected to place Taiwan-made steel, which already has a 25 percent tariff, on an equal footing, the Taiwan Steel & Iron Industries Association said yesterday. Speaking with CNA, association chairman Hwang Chien-chih (黃建智) said such an equal footing is expected to boost Taiwan’s competitive edge against other countries in the US market, describing the tariffs as "positive" for Taiwanese steel exporters. On Monday, Trump signed two executive orders imposing the new metal tariffs on imported steel and aluminum with no exceptions and exemptions, effective