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From Komfie Manalo, Opalesque Asia:

Hong Kong's Securities and Futures Commission (SFC) and Taiwan’s Financial Supervisory (FSC) Commission last week signed and exchanged a side letter detailing conditions to a bilateral memorandum of understanding (MOU), which would pave the way for the cross listing of exchange-traded funds (ETFs) in the two markets.

The agreement is expected to move closer the two regulators towards a common goal of cross listing of ETFs and help increase demand for ETFs.

In a press release, Hong Kong's SFC said that under the terms of the side letter, ETFs listed on the Hong Kong or Taiwan stock exchanges and managed by licensed asset managers would be mutually recognized in each other’s jurisdiction for the purpose of cross listings and offerings. The MOU was signed in 1996.

The side letter will also strengthen regulatory co-operation between the SFC and the FSC, in particular arrangements relating to information sharing and confidentiality regarding management of ETFs.

“This side letter marks a milestone in the regulatory co-operation with our Taiwan counterpart since the signing of the MOU. This is a major step forward to consolidate Hong Kong’s position as a preferred ETF platform with exposure to markets in Hong Kong, the Mainland and Taiwan. The fund management industry will benefit no......................

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