The Taiwan Stock Exchange and the Korea Exchange have 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.
In Taiwan, the «Yuanta Korea KOSPI 200 ETF» listed on the Taiwan Stock Exchange (TWSE). Managed by Taiwan’s Yuanta Securities Trust, it tracks the benchmark KOSPI 200 index, which consists of the 200 largest companies listed on the Korea Exchange (KRX) KOSPI market and represents 95 percent of its total market capitalization.
In Korea, the «Tiger Taiwan TAIEX (H) ETF» listed on the 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.
The listings follow the signing of a Memorandum of Understanding (MoU) between TWSE and KRX in December 2015, as well as a separate MoU between Mirae Asset Global Investment and Yuanta Securities Trust on index product development.
The exchanges say that they will continue to work together on new projects, which could include jointly compiling new indices of Taiwanese and Korean-listed companies based on themes such as high dividends or prominence in the technology industry.
