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Taiwan, South Korea may jointly compile stock indexes

Taiwan, South Korea may jointly compile stock indexes

Taipei, July 25 (CNA) Taiwan and South Korea are likely to work together to compile stock indexes in the first stage of bilateral cooperation on securities trading, according to the Taiwan Stock Exchange (TWSE). TWSE president Michael Lin (???) said the Korea Exchange (KRX), on which all common stocks under the Korea Composite Stock Price Index are traded, is willing to cooperate with the Taiwan stock exchange. At the end of an Asian Exchange Forum in Taipei Friday, Lin said that through the jointly compiled indexes, the TWSE and the KRX will introduce new products to each other in the future. About 250 representatives from 10 exchanges in Asia attended the forum. If the plan is realized, it will be the first time that the TWSE, which operates the main board with the benchmark Taiwan Stock Exchange Capitalization Weighted Stock Index (Taiex), will jointly compile stock indexes with a foreign counterpart. The joint efforts are expected to allow heavyweight stocks in both stock exchanges, such as Taiwan Semiconductor Manufacturing Co. (???) and Samsung Electronics Co., to be traded on the same index, Lin said. The TWSE will set up a working group to speed up the pace of cooperation with the Korean exchange, which may attract more foreign investors to Taiwan, Lin said. After launching the joint indexes, the TWSE and the KRX may list exchange traded funds (ETFs) on each other's market, Lin said. The KRX is interested in Taiwan's capital market and in some small and medium- sized high-tech firms in Taiwan that have developed niche products to woo consumers, he said. Lin said the KRX is also amazed at the high dividend payouts in Taiwan. Largan Precision Co. (???), a smartphone camera lens supplier to Apple Inc., is one of the Taiwanese firms that pay high cash dividends and is set to issue a NT$51 (US$1.64) cash dividend for 2014. Lagan is making the biggest payout in the local equity market's history, after the high-tech firm's 2014 net profit more than doubled from a year earlier. (By Tien Yu-pin and Frances Huang)


Updated : 2021-09-27 00:40 GMT+08:00