Singapore Exchange (SGX) and Taiwan Stock Exchange (TWSE) say that they are signing a joint letter of intent that promises to work towards linking their respective stock markets. The development has undertones of the nascent Shanghai-Hong Kong Stock Connect – which does not involve either Singapore or Taiwan.
Taiwan and Singapore currently offer products for both domestic and foreign investors. For example, SGX has offered MSCI Taiwan futures for nearly two decades. The exchanges will now investigate a link which could provide members of each exchange a direct way to trade, clear, settle and take custody stocks that are listed on the other.
Any future link between the two will be subject to regulatory approvals.
Magnus Bocker, the CEO of SGX said that,“international investors keen on Greater China opportunities are coming to Singapore and Taiwan because we are leading offshore renminbi centres. There is therefore potential for cooperation in infrastructure and other areas so as to better serve these investors.”