Taiwan and Japan Celebrate Groundbreaking ETF Cross-Listing
Significant Milestone for Taiwan and Japan's Financial Markets
Today, the Taiwan Stock Exchange (TWSE) and the Tokyo Stock Exchange (TSE) marked a pivotal achievement in financial integration with their first-ever simultaneous launch of cross-border exchange-traded funds (ETFs). This collaboration solidifies Taiwan's ambitions of becoming a key asset management hub in Asia.
Launch of the Nomura TOPIX Feeder ETF
Nomura Asset Management Taiwan Ltd. has officially launched the Nomura TOPIX Feeder ETF (Ticker: 009812) on the TWSE. This innovative fund provides investors with valuable exposure to the robust Japanese equity market through the NEXT FUNDS TOPIX ETF (Ticker: 1306), which stands as Japan's largest ETF by assets under management. Additionally, it is part of Japan's NISA tax-free investment initiative, making it a widely preferred choice among retail investors.
Simultaneous Launch on the Tokyo Stock Exchange
At the same time, the NEXT FUNDS TIP FactSet Taiwan Innovative Technology 50 Index Exchange Traded Fund (Ticker: 412A) debuted on the TSE. This ETF mirrors the NEXT FUNDS – Nomura Taiwan Innovative Technology 50 ETF (Ticker: 00935), showcasing the remarkable vigor of Taiwan's tech-driven economy. Notably, AI and semiconductor sectors make up an impressive 72% of the Index's total market capitalization. Since 2020, Taiwan's benchmark index has more than doubled, hitting record highs recently with foreign ownership up to 46%.
Expressions of Confidence and Collaboration
TWSE Chairman and CEO Sherman Lin emphasized that these cross-listings herald a new era of economic collaboration between Taiwan and Japan. He articulated that this milestone exemplifies growing market confidence and Taiwan's dedication to innovation and heightened global integration. It was a special touch that both he and TSE President Iwanaga wore golden ties, symbolizing the promising new chapter in collaborations between the two capital markets.
A Joint Listing Ceremony
The launch event featured a joint ceremony with notable figures present from both exchanges and key financial regulators. Distinguished attendees included Dr. Yen-liang Chen, Vice Chairperson of the Financial Supervisory Commission; Kao Ching-ping, Deputy Director-General of the Financial Supervisory Commission Securities and Futures Bureau; along with other prominent figures from various financial organizations, all celebrating this momentous occasion.
The Importance of Cross-Border Innovation
Dr. Yen-liang Chen remarked that this initiative underscores Taiwan's crucial role in the regional financial landscape. He believes it enhances Taiwan's position within Asia's asset management framework and showcases the vital impact of cross-border innovation for driving sustainable growth.
Nobuo Suzuki, Senior Corporate Managing Director at Nomura Asset Management, highlighted that the new listings offer investors in both markets superior access to diversified portfolios. The objective is to craft globally relevant financial products aimed at enhancing market connectivity and encouraging more profound investor engagement.
A Holistic Approach Towards Investment Opportunities
TSE President and CEO Moriyuki Iwanaga highlighted the transformative potential of this partnership, creating a bridge between the capital markets of Taiwan and Japan and positioning both as crucial players in Asia’s financial ecosystem. TWSE President Edith Lee, attending the event in Tokyo, mentioned the significant potential of Japan's NISA program to elevate retail investor engagement and market liquidity. She noted that Taiwan's markets are on a growth trajectory, and this ETF serves as a testament to the technological innovations bolstering its appeal to global investors.
The Dual Listings: A New Era for Financial Cooperation
The dual-launch of these ETFs embodies a major milestone for Taiwan-Japan financial cooperation. By broadening cross-border investment possibilities, they reinforce Taiwan's impactful role in Asia’s asset management landscape.
Frequently Asked Questions
What are cross-listed ETFs?
Cross-listed ETFs are exchange-traded funds that are simultaneously listed on more than one stock exchange, allowing investors in different markets to access the same fund.
Why are the Nomura TOPIX and NEXT FUNDS TIP FactSet ETFs important?
These ETFs symbolize collaboration between Taiwan and Japan and provide investors with diversified access to key markets and sectors.
How does the NISA program influence retail investment in Japan?
The NISA program allows for tax-free investment, encouraging more retail investors to engage in the market, thus enhancing market liquidity.
What significance do these listings have for Taiwan's capital market?
This initiative emphasizes Taiwan's growing influence in the regional asset management sector, demonstrating its commitment to innovative finance solutions.
Who attended the launch ceremony for these ETFs?
The launch included high-profile figures from financial organizations, including regulators and officials from both the TWSE and TSE, marking a significant partnership.
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