The heads of the Taiwan Stock Exchange (TWSE) and the Singapore Exchange say they hope to begin allowing companies from both countries to trade on each other’s stock exchanges early next year.
Representatives of the two stock exchanges signed a letter of intent on Wednesday announcing the two bourses’ commitment to open up to cross-border trading. This follows months of negotiations on an agreement that would allow Taiwanese companies to trade on Singapore’s stock exchange and vice versa.
Speaking Wednesday, Singapore Exchange CEO Magnus Böcker said that international investors actively participate in trading on both the Taiwan and Singapore stock exchanges. He said that the proposed Taiwan-Singapore agreement will help with financing in both countries’ capital markets.
"Taiwan’s stock exchange has over 800 listed companies," said Böcker. "This link will enable them to in a much better and efficient way reach out to Singapore, and Singapore has grown to be the largest asset management hub in Asia, and is on its way to become one of the largest asset management hubs in the world."
Meanwhile, Chairman of the Taiwan Stock Exchange, Lee Sush-der has said that he estimates it will take around six months of preparation before the agreement can go into effect.