Taiwan Stock Exchange and Korea Exchange Expand Ties with Cross-Listed ETFs

The move further expands the growing links and cooperation between the two bourses.

The Taiwan Stock Exchange (TWSE) and the Korea Exchange (KRX) today announced 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.

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In Taiwan, the ‘Yuanta Korea KOSPI 200 ETF’ has been listed on TWSE. Managed by Taiwan’s Yuanta Securities Trust Co., it tracks the benchmark KOSPI 200 index, comprised of the 200 largest companies listed on the KRX’s KOSPI market and representing 95 percent of its total market capitalisation.

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Dr. Jun-Ji Shih, Chairman of TWSE, commented: “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.”

In Korea, the ‘TIGER TAIWAN TAIEX(H) ETF’ has been listed 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.

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

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