Taiwan, South Korea to launch mutual ETF listings in October

Taiwan and South Korea will begin mutual listings of exchange traded funds (ETFs) in each other's stock market in October, according to the Taiwan Stock Exchange (TWSE).

The TWSE, which operates Taiwan's main stock market, said the mutual ETF listings in Taipei and Seoul will start on Oct. 7, less than a year after the TWSE and the Korea Exchange (KRX) signed a memorandum of understanding in December to forge closer cooperation.

To boost interest in Taiwan's ETFs among South Korean investors, the TWSE teamed up with the KRX to hold a seminar in Seoul on Sept. 22 to brief potential Korean institutional and retail investors on Taiwan's equity market.

According to the TWSE, the "Taiwan Day in Korea" seminar received a warm reception, with about 100 Korean investors attending the meeting to gain a better feel for the market in Taiwan.

Chou Shih-hao (???), a manager with the TWSE's market promotion division, talked about the latest developments in Taiwan's market and pointed to its advantages, such as its sound fundamentals, efforts to strengthen corporate governance and a diversified product portfolio.

Also at the seminar, the KRX invited experts from Seoul-based Mirae Asset Global Investments, which has a presence in Taiwan, and analysts from Yuanta Securities Korea, a subsidiary of Taipei-based Yuanta Securities, to discuss Taiwan's equity investment environment.

The experts and analysts gave a comprehensive introduction of Taiwan's first ETF to be listed on the KRX in October, which will track the Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX), the benchmark index of Taiwan's stock market.

The introduction of the Taiex-tracking ETF can help Korean investors seize buying opportunities when they focus on Taiwan's market, the TWSE said.

Taiwan Index Plus Corp. (??????) President Chen Hsin-chang (???) also spoke at the seminar, saying that the ETF will be the most effective way for foreign investors to invest in Taiwan's equity market.

The TWSE said the move to launch mutual ETF listings in Taipei and Seoul will further diversify the product mix in Taiwan's capital market and help it become more international and meet global standards.

The TWSE added that it will further strengthen ties with the KRX, and it hoped the two sides will build on the current level of cooperation to push for more deals in the future.

Source: Focus Taiwan News Channel