TWSE to launch dual currency ETF transactions in August

Focus Taiwan
Date: 2016/06/28
By: Tien Yu-pin and Frances Huang

Taipei, June 28 (CNA) The Taiwan Stock Exchange (TWSE) is planning to launch dual currency-201606280032t0001denominated exchange traded fund (ETF) transactions in August in a bid to provide investors more securities trading options.

In addition, the TWSE, which operates the local main board, said that dual currency ETF trading is expected to give investors more leeway to adjust their foreign currency investment portfolios.

Dual currency ETF trading is scheduled to kick off Aug. 8, the TWSE said. In an initial phase, the issuer of a Taiwan-dollar denominated ETF will be allowed to issue a beneficiary certificate denominated in Chinese yuan under the existing ETF, and the ETF and its beneficiary certificate will be exchangeable, the TWSE said.

The exchange rate of an ETF and its yuan-denominated beneficiary certificate has been set at 1:1, the TWSE said. After any exchange, investors will be allowed to sell the stock they just obtained immediately, a method which is expected to give more flexibility for investors to map out investment strategies, TWSE added.     [FULL  STORY]

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