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Taiwan investors in Chongqing urged to launch stock listings on TWSE

2018/07/19 17:05:31

Taipei, July 19 (CNA) The Taiwan Stock Exchange (TWSE) has urged Taiwanese investors operating in Chongqing, China, a place where many Taiwanese firms are located, to launch stock listings on the local main board.

The TWSE, which operates the local main board, said Thursday that it held an investment conference in the Chinese city a day earlier as part of its efforts to encourage Taiwanese firms to raise funds in the local market through stock listings.

According to the TWSE, the exchange has intensified its efforts to lure more listings by Taiwanese firms to reduce the impact of a prominent Chinese yuan-denominated A-share listing through an initial public offering (IPO) by Taiwanese manufacturing giant Hon Hai Precision Industry Co.'s Internet-focused Foxconn Industrial Internet Co. Ltd. in Shanghai in June.

After FII's A-share listing, United Microelectronics Corp., the second-largest contact chipmaker in Taiwan, announced at the end of last month that it is planning to sell shares of a subsidiary based in China -- Hejian Technology (Suzhou) Co. Ltd. -- through an IPO in Shanghai.

TWSE Senior Executive Vice President Rebecca Chen (陳麗卿), who led a delegation that met with Taiwanese investors based in Chongqing, answered questions raised by firms that could potentially launch IPOs in Taiwan.

To encourage more Taiwanese firms based in China to raise funds in Taiwan's capital market, the Financial Supervisory Commission (FSC) announced earlier this month that the commission has lowered the threshold for primary listings in Taiwan by Taiwanese companies operating overseas.

The relaxed measures include a move to streamline the review process for a listing application, cutting it to six weeks from the previous eight weeks, while the FSC is in discussions with the Investment Commission on removing the restrictions for board members of a foreign incorporated company raising funds in Taiwan.

In addition, the FSC is also planning to extend the period a foreign incorporated firm has to transfer shares from a share buyback program for its employees before the repurchased shares are canceled.

The new rules would allow five years for such a transfer rather than the current three years.

Chen said the TWSE has placed great emphasis on Taiwanese investors in China at a time when it aims to increase the number of primary listings by foreign incorporated firms, since China-based firms account for more than 80 percent of the main board's primary listings.

As of the end of June, a total of 70 foreign incorporated firms had launched primary listings on the main board, the TWSE said.

According to the TWSE, the investment conference held in Chongqing was one of a series of meetings held by the exchange to encourage foreign incorporated firms to launch listings in Taiwan, a move that is expected to increase the size of Taiwan's capital market.

Since March, delegations organized by the TWSE have visited Chongqing, Fuzhou in China's Fujian Province, Singapore, Malaysia, Vietnam and Thailand to meet Taiwanese investors there.

(By Tien Yu-pin and Frances Huang)