Taiwan stock Exchange sees three to five foreign listings

The bourse is targeting small and medium technology companies for initial public offerings, spokesman Stanley Chu told reporters at a lunch meeting in Taipei yesterday. Domestic IPOs may drop to 25 in 2010 from 26 last year, while listings of Taiwan depositary receipts by overseas companies may increase to as many as 20 this year, from 10 last year, he said.

“The numbers may appear small but we have stringent criteria to make sure our investors are protected,” Chu said. The bourse is looking for “big brand names” to list TDRs in Taiwan, Chu said, declining to name any.

The benchmark TAIEX Index rose 78 percent in 2009, the most since 1993, while closer ties with China last year prompted Tingyi (Cayman Islands) Holding Corp., the largest noodle-maker in China, and Want Want China Holdings Ltd., China's largest maker of rice cakes, to list TDRs on the island. Both companies are controlled by Taiwanese investors.

The TAIEX index was little changed yesterday.

“As for foreign companies, I am not so sure if we can get them to list here first, given the world market is so big,” said Harvey Chang, a fund manager at SinoPac Securities Investment Trust Co., who helps oversee NT$50 billion. Still, the TDR target is “realistic” because “some Taiwan related companies may like to return to list because they may get better valuations back home and some publicity,” he said.

Taiwan's US$643 billion market value is dwarfed by the US$3 trillion in China and US$2.1 trillion in Hong Kong.

Taiwan and China are planning to permit trading of each others' shares for the first time as ties improve 60 years after a civil war ended. A so-called trading platform may list as many as 30 stocks from each market, Taiwan Stock Exchange Chairman Schive Chi said in May.

Taiwan-China relations have warmed since President Ma Ying-jeou took office in May 2008 and dropped the pro-independence stance of his predecessor, Chen Shui-bian. Closer ties with Taiwan's biggest trading partner may help Ma hasten a recovery in the export-dependent economy, which contracted 1.29 percent in the third quarter.

Subscribe to The China Post and save 25%. Click here

SharePrintEmail

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

Submit

 Receive China Post promos
 Respond to this email