Taiwan and Shanghai stock exchanges to forge closer ties

Both sides are expected to sign a memorandum of understanding before unveiling a series of activities for future cooperation, the China Times cited TSE chairman Schive Chi as saying.

Speaking at a seminar on the global credit crisis and cross-Strait financial cooperation, Schive said the two sides had reached a deal after months of negotiation and staff exchanges.

“We are hoping we will sign the MOU (memorandum of understanding) at the end of April or in early May,” Schive said at the seminar on Sunday.

The report said once the MOU is signed, the TSE and the SSE will launch an exchange-traded funds index for markets in Taiwan, China and Hong Kong.

The three then plan to set up a trading platform by encouraging 30-50 firms to list from each market, the report added.

“A well-built capital market will deliver long-term benefits to the economy,” Schive said.

Taiwan and China will hold more talks in Nanjing on April 26 to boost trade and take on the global financial crisis.

The move is the latest sign of closer ties between China and Taiwan since the mainland-friendly Ma Ying-jeou became the island's president last May following years of high tensions under his predecessor.

Since Ma took office China and Taiwan have launched direct passenger flights and shipping links to boost tourism, while relaxing rules for businesses to operate.

However, Beijing still views Taiwan as part of its territory awaiting reunification, by force if necessary. The two sides have been governed separately since they split at the end of a civil war in 1949.

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