Cross-Listed Exchange-Traded Funds (ETFs) from Taiwan and Japan Now Accessible on Both Taiwan and Tokyo Stock Markets Concurrently

Cross-Listed Exchange-Traded Funds (ETFs) from Taiwan and Japan Now Accessible on Both Taiwan and Tokyo Stock Markets Concurrently

The Taiwan Stock Exchange (TWSE) and the Tokyo Stock Exchange (TSE) have taken a significant step forward in their financial collaboration, debuting their first cross-border exchange-traded funds (ETFs). This initiative, marked by a joint ceremony attended by senior officials from both exchanges and financial regulators, underscores Taiwan's strategic role in regional finance and broadens cross-border investment access.

The TWSE's primary business operations include listing promotion and review, post-listing supervision and corporate governance, maintaining market trading and order, securities firms' services, investor protection, clearing and settlement operations, safeguarding against market defaults, and the monitoring of illegal transactions. Established in 1962, the TWSE has been at the forefront of operating and advancing the Taiwan stock market.

One of the debut ETFs, the NEXT FUNDS TIP FactSet Taiwan Innovative Technology 50 Index Exchange Traded Fund (Ticker: 412A), showcases Taiwan's technological strength to global investors. Companies in the AI and semiconductor sectors account for 72% of the index's total market capitalization, reflecting the island nation's focus on cutting-edge technology.

Meanwhile, the "NEXT FUNDS – Nomura TOPIX Feeder ETF" listed on the Taiwan Stock Exchange offers exposure to Japan's equity market. Developed and marketed by Nomura Asset Management, this ETF is one of the most widely held ETFs among Japanese retail investors and is included in Japan's NISA tax-free investment program. The TWSE President, Edith Lee, noted the potential of Japan's NISA program to enhance retail investor participation and market liquidity.

Dr. Yen-liang Chen, Vice Chairperson of the Financial Supervisory Commission, stated that this initiative underscores Taiwan's strategic role in regional finance. TSE President and CEO Moriyuki Iwanaga emphasized the strategic significance of the partnership between the TWSE and TSE, while TWSE Chairman and CEO Sherman Lin remarked that the cross-listings mark a new chapter in financial cooperation between Taiwan and Japan.

Foreign ownership in Taiwan's stock market approaches 46%, indicating a growing interest from international investors. The dual listings represent a milestone in Taiwan-Japan financial collaboration, reinforcing Taiwan's role in Asia's asset management landscape. Nobuo Suzuki, Senior Corporate Managing Director of Nomura Asset Management, stated that the cross-listings provide investors in both markets with seamless access to diversified portfolios.

As global markets continue to evolve, cross-border collaborations like this one between the TWSE and TSE are set to play a crucial role in shaping the future of finance. Taiwan's benchmark index has more than doubled since 2020, reaching an all-time high this month, signalling a promising outlook for the island nation's financial sector.

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