Taiwan Today

The Hang Seng H-Share Index Exchange Traded Fund and the Hang Seng Index ETF debuted on the Taiwan Stock Exchange Aug. 14, giving local investors access to the Hong Kong stock market and marking a great step forward in the internalization of the domestic bourse. The two new index funds are the first two offshore ETFs ever to have been traded on the local market. The total number of ETFs on the Taiwan Stock Exchange now stands at 13: two foreign ones and 11 domestic. The Hang Seng H-Share Index ETF tracks the Hang Seng China Enterprises Index, while Hang Seng Index ETF follows the Hang Seng Index. With the launching of the new ETFs, the pre-existing 11 ETFs all surged August 13. Polaris Taiwan Top 50 Tracker Fund boosted 2.3 percent, Polaris/P-Shares TSEC Taiwan Non-Tech 50 ETF rallied 2.54 percent and Polaris/P-Shares MSCI Taiwan Financials ETF soared 3.19 percent. Statistics from Barclays Global Investors showed that the global community issued a total of 1,707 ETFs for listings on 42 exchanges as of June. Their combined assets exceed US$789 billion. Out of these 1,707 ETFs, 1,359 are either cross-listed or have multiple listings, said Chi Schive, chairman of the Taiwan Stock Exchange Corp. Such figures point to a trend of listing across markets, he said. It also highlights the importance of providing diverse options in any market. In order to further internationalize the ETF segment, the local bourse will seek additional listings of ETFs from London, Tokyo and New York. The introduction of ETFs from other countries will allow local investors to trade globally more conveniently and more cost-effectively, Schive said. (HML-HZW)