Taiwan exchanges launch cross-market index

The Taiwan Stock Exchange and the GreTai Securities Market, have launched Taiwan’s first cross-market index, named the Formosa Stock Index.

Taiwan’s two stock exchanges, The Taiwan Stock Exchange (TWSE) and the GreTai Securities Market (GTSM), have co-compiled the Formosa Stock Index, This new launch represents Taiwan’s first cross-market index.

Both markets have their own respective indices, the TSWE’s index being the TAIEX and GTSM’s is known as the GTEX.

The cross-market index covers stocks listed on both bourses and measures the aggregate performance of the whole Taiwan securities market.

The Formosa Stock Index covers all constituents of TAIEX and GTEX and is designed to provide domestic and international investors with the aggregate performance of the entire Taiwan securities market.

The two markets plan a second step for this new index in which narrowly-based indices will be compiled around specific sectors and themes.

Elsewhere in Asia, other securities markets already have cross-market indices. In Korea, the Korea Stock Exchange along with Kosdaq offer the cross-market KRX 100 index,

In January 2014, after the consolidation of the Tokyo Stock Exchange and the Osaka Securities Exchange, Japan launched the cross-market JPX Nikkei 400 Index.

In China, the Shanghai Stock Exchange and Shenzhen Stock Exchange began the CSI 300 Index in 2005 via their joint venture, China Securities Index, in order to track the performance of the two A-share markets.