Taiwan builds bridges with the mainland
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| "We understand we cannot isolate our exchange only in Taiwan: we need to extend our market" |
Stock market reform has come to Taiwan. The Taiwan Stock Exchange has launched a plan to merge the country’s various exchanges and platforms, and to list them next year.
"We don’t have a concrete plan on the amount of capital to be raised: we’re at the pre-IPO stage," says Rong-I Wu, chairman of the Taiwan Stock Exchange. But it is clear that the flotation will involve the merger of the stock exchange, the GreTai Securities Market second board, the Taiwan Futures Exchange and the Taiwan Depository & Clearing Corporation into subsidiaries of a single new holding company.
Why is this being done? "One reason is it will be more efficient and cost-effective if we merge the cash and the futures," says Wu. "Secondly we can push forward consolidation to promote our strategic direction for the future development of the exchange. We understand we cannot isolate our exchange only in Taiwan: we need to extend our market, to talk about finding a strategic alliance with an exchange in the US or Europe.