Investment firm Nomura initiates cross-border exchange-traded fund (ETF) listings in Taiwan and Japan

Investment firm Nomura initiates cross-border exchange-traded fund (ETF) listings in Taiwan and Japan

In a significant step forward for international cooperation in the capital market, Taiwan and Japan have launched cross-border exchange-traded fund (ETF) listings. The launch ceremony, attended by high-ranking officials from both countries, took place in Taipei, Taiwan, and was later replicated in Tokyo.

The Taiwan Stock Exchange (TWSE) president, Edith Lee (李愛玲), and chairman Sherman Lin (林修銘) were among those present at the Taipei ceremony. Their Japanese counterpart, the president of the Tokyo Stock Exchange, was also in attendance.

As of the end of last month, Taiwan is the third-largest ETF market in the Asia-Pacific region, with 294 ETFs worth NT$6.77 trillion (US$224.86 billion) on the Taiwan Stock Exchange. This milestone was achieved with the help of the Financial Supervisory Commission (FSC) which is making efforts to turn Taiwan into a regional asset management hub.

Nomura Asset Management Co has played a pivotal role in these cross-border listings. In Tokyo, they listed the NEXT FUNDS TIP FactSet Taiwan Innovative Technology 50 Index Exchange Traded Fund (412A), which follows Taiwan's Nomura Taiwan Innovative Technology 50 ETF (00935). Similarly, in Taipei, Nomura Asset Management Taiwan Ltd listed the NEXT FUNDS-Nomura TOPIX Feeder ETF (009812) which tracks Japan's largest ETF, the NEXT Funds TOPIX (1306.JP).

The Tokyo Stock Exchange president expressed hope that cross-listings will eventually extend to active ETFs, not just index-tracking products. However, no specific details about the expected impact of these cross-border ETF listings were given in either ceremony.

Taiwan's recognition of Japan as an overseas ETF registration and management site was instrumental in the launches of the cross-border ETFs. This development is expected to foster greater investment opportunities and strengthen the relationship between the two economies.

ETFs, which trade like shares and can track anything from a single stock to a broad market index, have become increasingly popular in recent years. The cross-border listings mark a significant step in the globalisation of the ETF market and demonstrate the commitment of both Taiwan and Japan to fostering international cooperation.

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