New Taiwan-South Korea tech index to launch in Q3: sources

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Foxconn motherboards at the annual Computex computer exhibition in Taipei. Photo: Reuters / Tyrone Siu

A new stock index jointly managed by Taiwan’s and South Korea’s main bourses will comprise 30 blue-chip technology shares, each with a free float market capitalization of at least US$2 billion, and will launch in the third quarter, people with direct knowledge of the matter have told Reuters.

Taiwan’s technology firms, which have smaller market capitalizations, will account for more of the index constituents than their South Korean counterparts, one of the people said on Thursday, but did not provide an exact number.

“Both sides are still finalizing the details, but the makeup of the index – 30 well-known big enterprises – won’t change. The index launch should be around September,” another person said, adding that Samsung Electronics and Hon Hai Precision Industry Co, which goes by the trade name Foxconn, would be in the index.

US-based S&P Global Inc, a provider of ratings, benchmarks, analytics and data to the capital and commodity markets, will help promote the new index, the people said.

Last month, Taiwan Stock Exchange Corp President Lee Chi-hsien told Reuters in an interview that the creation of new products with the Korea Exchange was also being done to curb pressure from possible outflows to China after mainland shares were added to a key index of US index provider MSCI, a global benchmark.

At the time, Lee said the Taiwan-Korea tech index could be ready as soon as July or August. The two sides originally signed a memorandum of understanding in December 2015.

Source

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