Shanghai, Taiwan exchanges to sign cooperation MOU

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The Shanghai Stock Exchange and its counterpart in Taiwan will sign a memorandum of understanding soon to strengthen cooperation in the capital market, 21st Century Business Herald reported on Thursday.

The Taiwan Stock Exchange said it welcomes Chinese mainland companies to go public in Taiwan, the report said.

It also quoted a capital industry expert as saying the cooperation has been in a preparation since last year.

"The MOU will promote cooperation in the primary market of the two parties," said CY Huang, director of the Taiwan M&A and Private Equity Council, adding that recent cooperation in the secondary market has been smooth.

Currently, Chinese mainland investors can invest in Taiwan through a program for qualified domestic institutional investors, and Taiwan residents can indirectly participate in the mainland A-share market.

A pilot program allowing cross-border stock trading between the Hong Kong and Shanghai stock markets was announced earlier this month in China's latest move to open up its capital markets.

Taiwan has a strong desire to cooperate with the Chinese mainland in finance, Huang said.