The Financial Supervisory Commission (FSC) is going to conduct a feasibility study on setting up a Taipei-Hong Kong Stock Connect. FSC Chairman William Tseng made the announcement Wednesday, six months after the Shanghai-Hong Kong Stock Connect was established in Hong Kong.
The Shanghai-Hong Kong Stock Connect was launched last November. The program is an important step in China’s financial reform. It allows investors in Hong Kong and Shanghai to invest in one another’s markets. That gives international investors access to Chinese stocks from Hong Kong.
William Tseng said a possible “Taipei-Hong Kong Stock Connect” program will work very similarly to the Shanghai-Hong Kong mechanism. Tseng said the FSC has already instructed the Taiwan Stock Exchange to look into the matter. But Tseng also said that setting up such a link would require a consensus within Taiwan.