Hong Kong, Taiwan Regulators Approve Cross-Listing of ETFs

by on May 26, 2009

Financial regulators in Hong Kong and Taiwan have reached an agreement that will expand the availability of ETFs in these markets. Hong Kong’s Securities and Futures Commission and Taiwan’s Financial Supervisory Commission announced late last week that they have approved the cross-listing of 16 ETFs listed in Hong Kong and 11 listed in Taiwan. 

Eddy Fong, chairman of Hong Kong’s SFC, stated “the fund management industry will benefit not only from the diversified product markets, but also increased investment flows resulting from the new measure.” Separately, Schive Chi, chairman of Taiwan Stock Exchange Corp., indicated that the stock exchanges of Taiwan, Hong Kong, and China plan to develop a Greater China index for use as a benchmark for ETFs.

While the astounding growth rates of ETFs in the U.S. are relatively well known, ETFs in emerging markets are also experiencing significant surges in popularity. Cross-listing of ETFs in countries such as Taiwan and Hong Kong indicates that regulators are becoming increasingly comfortable with these funds, and that their appeal is becoming more widespread.