Taiwan-Singapore stock market link set for first half of 2015

TAIPEI — The Taiwanese and Singapore stock exchanges are expected to launch a link in the first half of next year that will allow investors in one country to trade shares directly on the other’s bourse, Taiwan’s Central News Agency reported yesterday, citing Financial Supervisory Commission (FSC) chairperson Tseng Ming-chung.

Without having to place overseas orders through brokerages, investors will be able to trade more efficiently and cost-effectively, potentially adding to the liquidity pool.

The announcement comes after the two exchanges signed a letter of intent in September for the tie-up, which Singapore Exchange CEO Magnus Bocker said offered potential for cooperation in infrastructure and other areas at a time when global investors keen on Greater China opportunities are coming to Singapore and Taiwan as the two are leading offshore yuan centres.

Speaking at a hearing of the financial committee of the Legislative Yuan yesterday, Mr Tseng said boosting trading volume is the FSC’s top priority in policymaking next year.

The link with Singapore will be followed by a similar move with the Tokyo stock exchange in the second half of next year, he said, adding that Taiwan was also in talks with the London exchange to forge such a link. Such links are part of efforts by the FSC to boost globalisation in the local equity market.

The FSC on Nov 3 relaxed restrictions on margin trading and short selling, a move that had supported the Taiwanese stock market and prevented turnover from falling further, Mr Tseng said.