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New Taiwan-South Korea tech index to have 30 blue-chips, Q3 launch -sources
July 6, 2017 / 6:02 AM / 5 months ago

New Taiwan-South Korea tech index to have 30 blue-chips, Q3 launch -sources

TAIPEI, July 6 (Reuters) - A new stock index jointly managed by Taiwan’s and South Korea’s main bourses will comprise 30 blue-chip technology shares, which each have a free float market capitalization of at least $2 billion, and will launch in the third quarter, people with direct knowledge of the matter told Reuters.

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

“Both sides are still finalising the details, but the makeup the index - 30 well-known big enterprises - won’t change. The index launch should be around September,” another person said.

The person added that Samsung Electronics, TSMC , and Hon Hai Precision Industry Co, which goes by the trade name Foxconn, would be in the index.

Both sources declined to be named because they were not authorised to speak to media.

U.S.-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 U.S. 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.

Reporting by Roger Tung; Writing by J.R. Wu; Editing by Sam Holmes

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