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Korea, Taiwan to Work on Creating Joint Stock Indices
Joint Stock Indices
Korea, Taiwan to Work on Creating Joint Stock Indices
  • By Jung Suk-yee
  • March 21, 2017, 02:30
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KRX CEO Jeong Chan-woo (left) visited the Taiwan Stock Exchange on March 20 and met with its chairman Shih Jun-ji to discuss joint stock index development.
KRX CEO Jeong Chan-woo (left) visited the Taiwan Stock Exchange on March 20 and met with its chairman Shih Jun-ji to discuss joint stock index development.

 

The Korea Exchange (KRX) announced on March 20 that it would develop IT sector and high-dividend indices together with the Taiwan Stock Exchange (TWSE) and release the indices in the third quarter of this year.

“This is the first time we create an index with a foreign stock exchange,” the KRX explained, adding, “The indices will provide an effective passive investment strategy for investors interested in Asia.”

According to the KRX, the IT sector index is planned to be made up of a number of blue chips such as Samsung Electronics and TSMC and the high-dividend index is to be designed to allow simultaneous investment in high-dividend stocks in the two countries.

The KRX is planning to assist in the quick listing of products such as ETFs following the joint development of the indices and attract the other Asian stock exchanges to the indices as well.