HKEx exploring stock link with Taiwan

April 28, 2015 11:18
Charles Li is reportedly in talks with five of  Taiwan's biggest brokerages about a stock trading link. Photo: HKEJ

Hong Kong Exchanges and Clearing Ltd. (HKEx, 00388.HK) is in discussions with five of Taiwan's biggest brokerages about a cross-border stock trading scheme, the Hong Kong Economic Journal reported Tuesday. 

These are Yuanta Securities, KGI Securities, Fubon, SinoPac Securities and Capital Group, the report said, citing Taiwanese media.

HKEx chief executive Charles Li has been in talks with their representatives about a Hong Kong stock link with Taiwan similar to a scheme with Shanghai and soon Shenzhen, the report said.

"In theory, HKEx supports the concept of connecting with various markets, including Taiwan," an HKEx spokesperson said. 

"In practice, implementing a [stock] connect program requires in-depth discussions and cooperation across a number of areas, including developing business and technical details.

"Regarding a possible link with Taiwan, before any preliminary discussions could take place, we would need to consult the relevant authorities in Taipei."

Tseng Ming-chung, Taiwan's chief financial regulator, doubts such a scheme at this stage, saying the two sides have yet to officially discuss the plan.

Earlier, China was reported to be exploring its own stock link with Taiwan.

But observers said a cross-strait stock trading program is fraught with political challenges and will be more complicated than China's existing schemes with Hong Kong.

Translation by Vey Wong

[Chinese version中文版]

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