Tokyo Stock Exchange Group Inc. on Thursday concluded a comprehensive cooperation pact with Taiwan’s GreTai Securities Market for startup companies.
The two bourse operators are expected to start listing companies on each other’s indexes to boost stock trading, though each also has its own motives for seeking the tieup.
The TSE views the alliance with the emerging stock market as an opportunity to lure Taiwanese companies to raise funds in Tokyo, including through new listings.
GreTai Securities Market, meanwhile, aims to enhance its stock market management by tapping the TSE Group’s knowhow.
The move “strengthens the cooperative relationship between our markets and sets us toward allowing firms from Taiwan to utilize the TSE” for future fundraising, TSE Group President Atsuhi Saito said after inking the accord.
GTSM’s total capitalization stood at $56 billion (¥4.45 trillion) as of the end of April, roughly half the capitalization of the Osaka Securities Exchange’s Jasdaq market for startup firms.
While the Taiwan Stock Exchange is mainly a vehicle for large and medium-size companies, the GTSM is an over-the-counter market for growing enterprises, including information technology firms. The number of firms listed on the bourse stood at 615 at the end of April.
In a related development, the TSE Group and Daiwa Securities Group Inc. are scheduled to sign a memorandum of understanding Tuesday with Myanmar’s central bank to develop a securities market amid the country’s rapid economic and democratization reform drive.