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TWSE gives green light to issue ETFs related to TOPIX

TWSE gives green light to issue ETFs related to TOPIX

Taipei, April 29 (CMA) The Taiwan Stock Exchange (TWSE) said Wednesday that it has given the go-ahead to Fubon Securities Investment Trust Co. (????) to issue three exchange-traded funds tracking the Tokyo Stock Price Index (TOPIX), the benchmark index in the Tokyo stock market. The TWSE said that the approval of the ETF issuance has been an early effort for Taipei and Tokyo to build closer cooperation in their capital markets. The move by Taiwanese and Japanese brokerages to secure licensing from the stock exchanges in Taipei and Tokyo to issue ETFs related to the two stock markets' indexes will be the first step toward collaboration between the two countries' capital markets. The three ETFs to be raised by Fubon will be denominated in the Taiwan dollar, the TWSE said, adding that such initial cooperation between the stock exchange in Taiwan and Japan could start in the second half of this year. Sources from the Financial Supervisory Commission (FSC), the top financial regulator in Taiwan, said that brokerages in Japan are also studying the feasibility of securing licensing from the TWSE to issue similar ETFs, tracking the weighted index on the local main board. The sources said that the exchange and its counterpart in Tokyo are planning to launch the second phase of cooperation by allowing ETFs already issued in Taiwan to list in Japan, and ETFs already issued in Japan to list in Taiwan. But, the TWSE said that the mutual listings need more time for planning before they can be realized. So far, the stock exchanges in Taipei and Hong Kong have started mutual ETF listings. The cooperation with foreign exchanges is part of Taiwan's effort to boost global visibility of the local capital market. Starting from July 1, Taiwan is set to open a cross-border stock trading platform with Singapore. Earlier this month, the China Securities Regulatory Commission (CSRC) said that the CSRC is studying the feasibility of a Taipei-Shanghai stock trading mechanism, modeled on the "Shanghai-Hong Kong Stock Connect" launched last year. However, the FSC has reservations about the CSRC's plan, saying Taiwan needs more time to assess such a cross-border stock trading platform. The commission said that the two stock exchanges in Taipei and Shanghai could first start with less complicated exchanges, such as cross-licensing stock indexes and market information sharing as the first stage of cooperation. (By Wu Ching-chun and Frances Huang)


Updated : 2021-09-20 16:52 GMT+08:00