Taiwan stock exchange eying red-chip TDRs, H-shares

The red-chip companies will include China National Offshore Oil Corporation and CNPC (Hong Kong) Limited, which trade in crude oil and oil exploration stocks, said TWSE Chairman Chi Schive.

"The Financial Supervisory Commission's decision to allow Taiwanese investors to trade red-chip stocks is a milestone in Taiwan's capital market, " Schive said at a ceremony to mark the listing of TDRs of China-based Good Friend International Holdings Inc.

Red chips are shares in Chinese companies that are incorporated outside China and listed in Hong Kong and Macau.

Schive said the TWSE also plans to invite Hong Kong-listed H-share companies to issue TDRs.

H-shares are shares of companies incorporated in mainland China and listed on the Hong Kong Stock Exchange.

According to Schive, after Taiwan and China sign the proposed cross-Strait economic cooperation framework agreement (ECFA) , the TWSE also plans to seek various other kinds of products.

A TWSE group is scheduled to make a business promotion trip to Hong Kong and China next month, he said.

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