Taiwan Stock Exchange And Korea Exchange Expand Ties With Cross-Listed ETFs

The Taiwan Stock Exchange (TWSE) and the Korea Exchange (KRX) announce the cross listing of ETFs tracking the benchmark indices of both markets. The move further expands the growing links and cooperation between the two bourses. Both ETFs will be the first index-based products to track Korean and Taiwanese securities in each market.

In Taiwan, the “Yuanta Korea KOSPI 200 ETF” listed today on TWSE. Managed by Taiwan’s Yuanta Securities Trust Co., it tracks the benchmark KOSPI 200 index, which consists of the 200 largest companies listed on the KRX’s KOSPI market and represents 95% of its total market capitalization.

In Korea, the “TIGER TAIWAN TAIEX(H) ETF” listed today on KRX. Managed by Korea’s Mirae Asset Global Investment, it tracks the benchmark TAIEX index, which covers all listed common shares traded on TWSE and is the benchmark index for the Taiwan securities market.

The listings follow the signing of a Memorandum of Understanding (MoU) between TWSE and KRX in December 2015, as well as a separate MoU between Mirae Asset Global Investment and Yuanta Securities Trust Co. on index product development.

Dr. Jun-Ji Shih, Chairman of TWSE, said, “We are extremely pleased to be expanding our cooperation with KRX. I am especially pleased that we have been able to cross list ETFs less than a year since the signing of the MoU with KRX. Our deepening cooperation with KRX is the latest part of our ongoing strategy to work with overseas exchanges to help create listed products that further internationalize the Taiwan capital market.”

Dr. Chan-woo Jeong, Chairman and CEO of the Korea Exchange, said the listing of ETFs on both markets is expected to serve as an exemplary practice that will pave the way for expansion of investment in capital markets in Taiwan and Korea through cooperative exchanges between the two markets.

The Korea Exchange will continue to offer competitive investment opportunities for investors in the country and abroad by expanding the scope of joint projects and business network with major stock exchanges in the world including the Taiwan Stock Exchange.

Looking forward, the KRX and TWSE will continue to work together on new projects, which could include jointly compiling new indices of Taiwanese and Korean-listed companies based on themes such as high dividends or prominence in the technology industry.