Taiwan Stock Exchange Corporation (TWSE) said Friday that a Taiwan-based firm is to list two exchange traded funds (ETFs) to track two indices on the Tokyo Stock Exchange.
Senior Executive Vice President of TWSE, Yang Chao-zong, explained the benefits the move will bring to Taiwan’s stock market.
"When investors place stock orders in foreign countries, the amount will be counted as those countries’. Now we can attract investors to place orders in Taiwan. It’ll help increase the turnover," Yang said.
Taipei’s Fubon Asset Management is set to launch the two ETFs on the local main board to track the Tokyo Stock Price Index (TOPIX.)
The TWSE says that the TOPIX is one of the major indices on the Tokyo Stock Exchange, with more than 1,800 constituents. It has become a barometer of the development of Japan's capital market.