Japan and Taiwan Exchanges Reveal Cooperation Plans

Taiwan and Japan are set to improve links for investors with the cross listing of new exchange-traded funds (ETFs).

The Taiwan Stock Exchange (TWSE) will list the first leveraged and inverse ETFs tracking the TOPIX, following a deal with Japan Exchange Group (JPX).

Both exchanges expect the upcoming listing of the ETFs to be the catalyst for the introduction of more products to make cross-border trading easier.

“We hope that the launch of these ETFs will prelude the introduction of more products and initiatives that make it easier for investors in Taiwan and Japan to trade each market,” said Chao-zon Yang, senior executive vice president of TWSE. “Japanese investment in the Taiwan market has been growing steadily over the past few years and we are committed to introducing new investment channels between both markets.”

Investors have been attracted to Taiwan due to its high-tech industries, high liquidity and the attractive yields available for investors.