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Japan TOPIX funds enter market

Japan TOPIX funds enter market

As a direct link has been established between the securities markets of Taiwan and Japan, two funds established by Fubon Asset Management, the Fubon TOPIX Leveraged (2x) Index and the Fubon TOPIX Inverse (-1x) Index, were launched on the Taiwan Stock Exchange September 10. At the same time, the TSE signed an index contract with the Osaka Stock Exchange under the Japan Stock Exchange. Under the contract, the Osaka exchange can use index futures contracts from TAIEX, adding another index-based product to the stock market connection between Taiwan and Japan.
As Taiwan’s Financial Supervisory Commission fully promotes the entry of the country’s financial sector into markets in the Asian region, the TSE is actively forming alliances with international stock markets, and the fact that Taiwanese and Japanese stock markets sell each other’s products forms a key milestone in this process, TSE Chairman Lee Sush-der said. The two stock markets will actively move in the direction of mutually listing and selling more of each other’s products, while more cooperation with other stock markets from the Asian region is hoped for, he added.
The TOPIX is based on a sample of fully-listed companies on the Tokyo Stock Exchange under the Japan Stock Exchange and at present numbers more than 1,800 listings. The two new funds, the Fubon TOPIX Leveraged (2x) Index and the Fubon TOPIX Inverse (-1x) Index, reflect the daily gains and losses on the Tokyo Stock Market. They are the first two Japanese stock market ETF funds listed in Taiwan, giving the public here an opportunity to invest in the Japanese stock market.
This year, the number and volume of ETF listed and traded in Taiwan has continued to increase, so the emergence of the two Fubon Asset Management funds corresponds to the FSC’s financial import substitution policy, and is also providing Taiwan’s ETF market with renewed vitality, while speeding up the links between the domestic securities market and the international market and raising the competitiveness of Taiwan’s capital market.
As seen from the viewpoint of investors, Taiwanese citizens do have a need to invest in the Japanese market. According to statistics, NT$10.9 billion in investments found its way from Taiwan to Japanese financial products from January to July this year, including NT$10.4 billion in shares and NT$500 million in ETF. The arrival of the TOPIX funds will give investors who want to participate in the Japanese market a relatively low-cost but effective new channel while assist Taiwanese citizens in achieving the aim of balancing their financial investments.


Updated : 2021-09-16 23:45 GMT+08:00