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The Taiwan Stock Exchange said a Chinese-owned company will sell shares in the island for the first time next month, paving the way for China stock listings and underscoring improving ties between the two economies.
Yangzijiang Shipbuilding Holdings, China’s fourth- biggest shipbuilder whose shares are traded in Singapore, expects to raise NT$3.72 billion ($157.5 million) by listing Taiwan depositary shares, Stanley Chu, a spokesman at the Taiwan Stock Exchange, said by phone in Taipei.
Yangzijiang Shipbuilding Holdings, China’s fourth- biggest shipbuilder whose shares are traded in Singapore, expects to raise NT$3.72 billion ($157.5 million) by listing Taiwan depositary shares, Stanley Chu, a spokesman at the Taiwan Stock Exchange, said by phone in Taipei.
“This is definitely a milestone for Taiwan,” said Chu. “Our next step is to get red chips to list in Taiwan. Hopefully that will happen by the end of the year.” Red chips are Chinese companies incorporated overseas and traded in Hong Kong.
Yangzijiang is the first Chinese-majority owned company to list in Taiwan, the exchange said, bolstering Taiwan President Ma Ying-jeou’s two-year drive for improved relations between China and Taiwan. Tensions between the two sides have eased since Ma took office in May 2008, dropping the pro-independence stance of his predecessor and making economic relations with the mainland the priority of his administration.
Taiwan’s stock index rose the most since 1991 on April 30 last year after the island allowed Chinese investments for the first time since the civil war ended. The Taiex has declined 5.5% this year after rallying 78% last year.
Yangzijiang has surged 26% this year in Singapore trading, compared with a 1.1% gain for the Straits Times Index.
CLOSER RELATIONS
China regards Taiwan as part of its territory and has threatened to invade if the island declares formal independence. The two sides have been ruled separately since Chiang Kai-shek’s Kuomintang, or Nationalists, fled to the island after being defeated by Mao Zedong’s Communists in 1949.
“Chinese companies listing in Taiwan makes it convenient for local investors who like mainland companies,” said Alan Ho, who helps oversees NT$460 million for Union Securities Investment Trust Co.’s Union China Fund. “This also shows the closer relations both sides are having.”
Newyard Worldwide Holdings and Lido Point Investments are the top two investors in the company, according to data compiled by Bloomberg.
