TWSE, SSE deal paves way for “Greater China Index”

25 April 2014   Category: News, Asia, China, Global, Hong Kong, Singapore, Taiwan   By Hui Ching-hoo

Taiwan Stock Exchange (TWSE) has signed a memorandum of understanding (MOU) with Shanghai Stock Exchange (SSE), which could pave the way for the launch of a “Greater China Index”, according to a report from Commercial Times.

Sush-Der Lee, chairman of TWSE, noted that the index would be designed to track stocks listed in Taiwan, Shanghai and Hong Kong. Senior officials from the bourses have held talks to study the details on the compilation of the index.

With the increasing significance of the Greater China region's financial status, the need for an index to gauge stock markets in the region is critical, Mr. Lee added.      

The MOU comes days after the stock exchanges of Taiwan and Singapore reached an agreement to allow their companies to list on each other’s bourses by the end of 2014. TWSE has struck MOUs with bourses from 27 countries so far.

Separately, Mr. Lee said that TWSE planned to roll out a number of innovative indexes going forward such as a corporate governance index, industry index and thematic index.