Stock exchange promotes Taiwan investment in Japan
The China Post news staffTAIPEI, Taiwan -- Taiwan Stock Exchange (TWSE) Senior Executive Vice President Lih-chung Chien (簡立忠) visited Tokyo and Osaka to drum up business and investment from Japan and met with more than 10 enterprises and institutional investors in an effort to promote the listing of Japanese businesses in Taiwan, as well as the participation of Japanese investors in the local stock market, according to a press release issued by the TWSE yesterday.
September 20, 2013, 12:21 am TWN
By encouraging Japanese enterprises to enlist and invest in the Taiwan stock market, the TWSE hopes to expand the scale of the securities market for even more fruitful investment targets, said the TWSE.
TWSE features 29 different industry categories. For the ICT industry, many listed companies are engaged in raw materials, key components, OEM, ODM, and technical collaboration. Taiwanese and Japanese joint ventures are quite common. Non-ICT industry categories include companies engaged in the textile, chemical, automobile, electrical appliance, and the more recent financial and food chain sectors.
Bilateral investment and collaboration between Japan and Taiwan is also very common, the TWSE stated. The TWSE expects businesses that have close ties with Taiwanese industries to be able to attract investor interests. When listed, their stocks should perform well in the market.
According to Chien, encouraging these businesses to become listed in the Taiwan stock market brings the benefit of “energizing the securities market and economy.” To further this aim, the TWSE has over recent years abolished listing requirements necessitating a par value of NT$10 per share while closely examining differences in corporate law between Taiwan and Japan regarding issues such as share issuance, shareholder rights and the role of the board of directors, the TWSE said.
Following a visit to Shanghai in July, the trip to Tokyo and Osaka marks the second time that the TWSE has participated in an event to promote municipal investment. The economic forums in Tokyo and Osaka provided a chance for the TWSE to promote the uniqueness of Taiwan's capital market, increase international exposure of the Taiwanese market, and market Taiwan's policies towards the promotion of new IPOs, the TWSE said.
Through forums and direct conversations, the TWSE was able to exchange insights with participating business entities. During the tour, the TWSE conducted an exchange with over five service and manufacturing businesses that cover the ICT, franchise, household goods, tourism, and leasing sectors. The TWSE will continue to closely monitor the overseas expansion and financing activities of Japanese companies, while actively promoting the Taiwan stock market.
The TWSE officials were also accompanied by a trade delegation from the Taipei City Government to maximize the effectiveness of the trip.
Japanese Companies Advise on Taiwan's Capital Market
The TWSE officials split into two teams — one team accompanied the city government delegation while another visited a total of nine large-scale institutional investors, including two asset management companies, three securities firms, three trust banks, and one insurance company. Together, these institutions manage approximately 510 trillion JPY (about NT$150 trillion) worth of assets.
During the visit, the TWSE provided an overview of Taiwan's capital market and recent changes in major regulation, so that Japanese institutional investors could gain a better understanding of the Taiwanese market and an increased interest in Taiwan's stock market.
The Japanese representatives consisted of the heads of overseas investment divisions. Aside from participating and showing interest in the TWSE's presentation, these representatives also offered their opinions and suggestions regarding Taiwan's capital market.