GreTai to open yuan bond trading: chair
The China Post news staffTAIPEI, Taiwan -- GreTai Securities Market, the exchange for over-the-counter stocks, will open trading of renminbi-based bonds this year, said Chairman Lee Sush-der, yesterday.
January 18, 2013, 1:57 pm TWN
Lee made the remarks during GreTai's year-end news conference. Taiwan celebrates the Lunar New Year in February.
“In the new year, we have three major goals, which are trading transparency, fairness, and diversity,” he said.
Speaking on diversity, Lee said that this year GreTai will open trading of bonds denominated in renminbi, after the signing of a cross-strait currency clearance deal allowing more renminbi products to be offered by banks and financial institutions.
GreTai President Lee Chi-hsien added that the stock exchange will soon begin a public education campaign on the matter. After the clearance system is in place, GreTai will take applications from firms seeking to issue renminbi bonds.
According to Lee, the number of listed firms and stock transaction volume are important benchmarks for the financial soundness of a capital market. “For GreTai, our trading mechanism is transparent and disciplined, providing an ideal and comprehensive platform for firms to issue their securities.”
“This year, we'll continue to encourage overseas Taiwan businesses to come listed on GreTai through the underwriting efforts of accountants and securities firms,” Lee said, adding at least one overseas company — an agricultural biotech firm — will list on GreTai, an agricultural biotech firm.
According to him, overseas firms listed on GreTai now account for 15 to 16 percent of the total, an increase from 6 percent from last year.