TIP and KRX to launch cross-border indices 2017/03/20 16:00
Taiwan Index Plus (TIP), a wholly-owned subsidiary of the Taiwan Stock Exchange (TWSE), is set to co-compile 3 cross-border indices, IT Sector Index (ITI), Dividend Theme Index (DTI), and Representative Index (RPI) with the Korean Stock Exchange (KRX). The indices are scheduled to launch in Q3 2017. Base on the second Memorandum of Understanding on cooperation signed by the TWSE and the KRX back in 2015, where both parties agree “to work together to expand their ETF markets, jointly compile indices, conduct market promotion activities and engage in bilateral visits to share experiences,” TIP and KRX partner to foster development of innovative cross-border indices.
The three joint indices will be the first set of indices in the new TIP Cross-Border Index Series, which will track the performance of shares in Taiwan, Korea, and with the possibility of other Asian countries.
Dr. Jun-ji Shih, Chairman of the TWSE, said, “Not only do both the Taiwan and Korean markets share similar social, economic and cultural development experiences, the industrial structure of both markets also resembles each other in terms of high-tech industries and IT talents. These great similarities will provide a strong, solid foundation for the cooperation of co-compiling indices. We believe such cooperation between two bourses will provide investors in Taiwan and Korea withgreater access to international investments.”
Since the IT industry is the leading industry in both countries, one of the three indices has been determined to be the IT Sector Index. The IT Sector Index seeks to track returns on the top performing stocks from the IT sectors of Korea and Taiwan. The Dividend Theme Index seeks to track companies with a history of increasing dividends over the past years, as well as other operational metrics from all sectors of the Korea and Taiwan. The Representative Index focuses on the most representative stocks that capture unique market characteristics in participating Asian countries. The three joint indices are calculated in USD, KRW, and TWD currencies with price, gross and net returns.
The planned debut of the indices follows the earlier cross listing of ETFs tracking the benchmark indices of both markets. The new indices aim to cater more diversified investment products and better services, bringing mutual prosperity to the Taiwanese and Korean capital markets.
The indices have been designed to serve as an underlying for investable index-linked products, such as exchange-traded funds (ETFs) and derivatives (options, futures and warrants), as well as a benchmark for actively managed cross-border funds.
Chairman of TWSE & TIP, Dr. Jun-ji SHIH(right), and Dr. Jeong Chan Woo(left), Chairperson of KRX, met together in TWSE to discuss Joint Index Cooperation between Taiwan Index Plus and Korea Exchange.
About Taiwan Index Plus Corporation
Established in 2016, TIP is a professional index and information services provider and wholly-owned subsidiary of the TWSE. It aims to provide investors with high-quality, comprehensive indices and information services, satisfy growing investor appetite for indexing strategies, and create innovative products for Taiwan's capital market. To learn more, please visit: http://www.taiwanindex.com.tw
About Korea Exchange(KRX)
Korea Exchange (KRX) is the operator of Korea’s Securities and Derivatives Markets under the ‘Financial Investment Services and Capital Markets Act (FSCMA).’ KRX operates four Markets; KOSPI Market as a main board, KOSDAQ Market as a venue to small and medium sized enterprises, KONEX Market for start-up venture companies and Derivatives Market which boasts of the most liquid products in the World. Within its consolidated trading platform, KRX offers vast product line-up including equity shares, bonds, ETFs, ETNs, ELWs, Commodities, futures and options. For more information please visit our website at http://global.krx.co.kr/main/main.jsp
For further information, please contact:
Annie Hsia, Client Relations Department, Taiwan Index Plus
Phone: +886-2-8729-9002
E-mail: [email protected]
Alissa Hsu, Deputy Director, Client Relations Department, Taiwan Index Plus
Phone: +886-2-8729-9001
Email:[email protected]