Liberalization of Taiwan’s Securities Markets: The Case of Cross-Taiwan-Strait Listings

The purpose of this paper is to examine the liberalization of Taiwan’s capital market regarding cross-Taiwan-Strait listing of securities. Taiwan is in an advantageous position to compete with other Asian rivals to attract issuers and capital from China. However, the long political hostility ensures...

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Main Authors: Wang, Wen-yeu, CHEN, Christopher Chao-hung
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2011
Subjects:
TDR
Online Access:https://ink.library.smu.edu.sg/sol_research/979
https://ink.library.smu.edu.sg/context/sol_research/article/2931/viewcontent/2011_Wang_and_Chen___Cross_Taiwan_Strait_Listings__Edited__revised_.pdf
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spelling sg-smu-ink.sol_research-29312018-07-05T09:09:33Z Liberalization of Taiwan’s Securities Markets: The Case of Cross-Taiwan-Strait Listings Wang, Wen-yeu CHEN, Christopher Chao-hung The purpose of this paper is to examine the liberalization of Taiwan’s capital market regarding cross-Taiwan-Strait listing of securities. Taiwan is in an advantageous position to compete with other Asian rivals to attract issuers and capital from China. However, the long political hostility ensures that there is little regulatory cooperation on both sides of the Taiwan Strait. Assuming that the creation of a cross-strait capital market is an unstoppable trend, this paper examines from the perspective of regulatory competition several regimes that may facilitate Taiwan to overcome regulatory obstacles arising from the special Sino-Taiwan relationship. This paper argues that regulatory cooperation or even harmonization of Sino-Taiwan laws will be very difficult. However, the cooperation of stock exchanges in China and Taiwan may be a first step toward further official collaboration. Another approach is to strengthen domestic supervision in Taiwan with a sponsorship program. Nevertheless, such a program may be very expensive to maintain. Given the regulatory obstacles between Taiwan and China, a better approach seems to open an alternative trading market with more flexible rules designed for Chinese securities in Taiwan. Such a market-oriented approach may liberalise Taiwan’s capital market to Chinese and foreigners, while still maintain the level of domestic investor protection without raising much regulatory and compliance costs. 2011-02-01T08:00:00Z text application/pdf https://ink.library.smu.edu.sg/sol_research/979 https://ink.library.smu.edu.sg/context/sol_research/article/2931/viewcontent/2011_Wang_and_Chen___Cross_Taiwan_Strait_Listings__Edited__revised_.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Yong Pung How School Of Law eng Institutional Knowledge at Singapore Management University securities regulation cross-listing regulatory competition investor protection China Taiwan TDR Asian Studies Securities Law
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic securities regulation
cross-listing
regulatory competition
investor protection
China
Taiwan
TDR
Asian Studies
Securities Law
spellingShingle securities regulation
cross-listing
regulatory competition
investor protection
China
Taiwan
TDR
Asian Studies
Securities Law
Wang, Wen-yeu
CHEN, Christopher Chao-hung
Liberalization of Taiwan’s Securities Markets: The Case of Cross-Taiwan-Strait Listings
description The purpose of this paper is to examine the liberalization of Taiwan’s capital market regarding cross-Taiwan-Strait listing of securities. Taiwan is in an advantageous position to compete with other Asian rivals to attract issuers and capital from China. However, the long political hostility ensures that there is little regulatory cooperation on both sides of the Taiwan Strait. Assuming that the creation of a cross-strait capital market is an unstoppable trend, this paper examines from the perspective of regulatory competition several regimes that may facilitate Taiwan to overcome regulatory obstacles arising from the special Sino-Taiwan relationship. This paper argues that regulatory cooperation or even harmonization of Sino-Taiwan laws will be very difficult. However, the cooperation of stock exchanges in China and Taiwan may be a first step toward further official collaboration. Another approach is to strengthen domestic supervision in Taiwan with a sponsorship program. Nevertheless, such a program may be very expensive to maintain. Given the regulatory obstacles between Taiwan and China, a better approach seems to open an alternative trading market with more flexible rules designed for Chinese securities in Taiwan. Such a market-oriented approach may liberalise Taiwan’s capital market to Chinese and foreigners, while still maintain the level of domestic investor protection without raising much regulatory and compliance costs.
format text
author Wang, Wen-yeu
CHEN, Christopher Chao-hung
author_facet Wang, Wen-yeu
CHEN, Christopher Chao-hung
author_sort Wang, Wen-yeu
title Liberalization of Taiwan’s Securities Markets: The Case of Cross-Taiwan-Strait Listings
title_short Liberalization of Taiwan’s Securities Markets: The Case of Cross-Taiwan-Strait Listings
title_full Liberalization of Taiwan’s Securities Markets: The Case of Cross-Taiwan-Strait Listings
title_fullStr Liberalization of Taiwan’s Securities Markets: The Case of Cross-Taiwan-Strait Listings
title_full_unstemmed Liberalization of Taiwan’s Securities Markets: The Case of Cross-Taiwan-Strait Listings
title_sort liberalization of taiwan’s securities markets: the case of cross-taiwan-strait listings
publisher Institutional Knowledge at Singapore Management University
publishDate 2011
url https://ink.library.smu.edu.sg/sol_research/979
https://ink.library.smu.edu.sg/context/sol_research/article/2931/viewcontent/2011_Wang_and_Chen___Cross_Taiwan_Strait_Listings__Edited__revised_.pdf
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