Taipei--The Taiwan Stock Exchange (TWSE) said it is encouraging Taiwanese investors in Thailand to list on the Taiwan main board, as the Taiwan government continues to push its New Southbound Policy to forge a closer ties with members of the Association of Southeast Asian Nations (ASEAN) and other countries.
At a recent seminar in Bangkok, the TWSE gave a briefing on Taiwan's capital market, as part of its efforts to convince Taiwanese companies in Thailand to list in their home market.
TWSE President Lee Chi-hsien (???) said at the seminar that such listings would allow enterprises to raise funds from the capital market to expand their operations.
In addition, the listed companies will become better known, which will be helpful when they are trying to recruit talent for future development, he said.
At a time when many enterprises are facing succession challenges, a stock listing will improve their capital structure and fundamentals, Lee said.
In Thailand, government authorities have been pushing for an industrial upgrade, Lee said, adding that Taiwan has abundance of talent to help enterprises strengthen their global competitiveness.
Stock listings in Taipei, therefore, will be a good option for companies in the Southeast Asian country, he said.
According to the TWSE, Taiwan can provide a sound mechanism for listed companies to raise funds.
A listed company can launch a second public offering any time to secure more capital for future growth, the TWSE said.
It said Taiwan's capital market has become more international with the active participation of many foreign institutional investors.
According to TWSE data, foreign institutional investors hold a combined 40 percent stake in listed companies in Taiwan and account for 30 percent of the daily turnover on the equity market.
So far, a total of 61 foreign incorporated firms have launched primary listings on the local main board, including two Thai companies, circuit board maker Apex International Co. (??) and mechanical parts supplier JPP Holding Co. (????), the TWSE said.
Meanwhile, Thai jewelry designer and vendor Regal Jewelry Manufacture Co. (??) is scheduled to launch a primary listing on the Taiwan main board in June, the TWSE said.
Taiwan's Democratic Progressive Party government, which took office in May 2016, is hoping that its New Southbound Policy will help diversify investment and trade so that Taiwan will be less economically dependent on China.
Source: Focus Taiwan News Channel