Covid-19 Can’t Stop the TWSE and TDCC Jointly Promote Taiwan-Mongolia Market Cooperation

2020/12/21

In order to implement the “Taiwan Capital Market roadmap 2021-2023” and strengthen global partnerships, the Taiwan Stock Exchange (TWSE) and the Taiwan Depository & Clearing Corporation (TDCC) jointly held the "Taiwan-Mongolia Capital Market CEO Meeting & Webinar" on December 18 with the Mongolian Financial Regulatory Commission, the Ministry of Finance and major securities market operators in Mongolia. Mr. Lih-Chung Chien, President of the TWSE and Mr. Sherman Lin, Chairman & CEO of the TDCC, held joint dialogue with the Mongolian securities market leadership, followed by a discussion on clearing and settlement practices in both markets.

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The Mongolian securities market launched their T+2 settlement cycle at the beginning of 2020, and considered the benefit of learning about the successful experience of the Taiwan market. Although a face-to-face meeting is unfeasible during the COVID-19, today’s technology makes it possible to retain connection and so, the collaboration between the Taiwan and Mongolia remains strong.

The Taiwan and Mongolia capital markets have maintained a close relationship for years. The Mongolian Stock Exchange and the TWSE signed a Memorandum of Understanding (“MoU”) in 2002. The Mongolian Securities Clearing House and Central Depository, the predecessor of the Mongolian Securities Clearing Center (“MSCC”) and the Mongolian Central Securities Depository (“MCSD”), also engaged in MoUs with the TWSE and the TDCC. Based on the MoUs, Taiwan has been providing computer system and training courses on listing, trading, settlement and supervision to the Mongolian market, as well as conducting personnel exchanges since 2002. In 2014, Taiwan's Financial Supervisory Commission also led a delegation to Mongolia to assist in establishment of their regulatory framework in emerging stocks, deposit insurance and financial personnel education.

Mr. Lih-Chung Chien, President of the TWSE expressed that, “Although affected by the COVID-19 outbreak, the capital markets around the globe have adjusted to adapt to the new norm. In the early stage of the pandemic, Taiwan quickly put forward a contingency plan for all market participants and proceeded with inclusive market reforms, such as continuous trading, the ‘Corporate Governance 3.0 - Sustainable Development Roadmap’ and intraday odd-lot trading; all of which enhance market stability, trading efficiency and increase retail participation. The implementation of new measures in both the Taiwan and Mongolian market this year shows that both sides have the business acumen to not let the pandemic interrupt normal operations, and are able to turn crisis into opportunity and augment the capital market.”

Mr. Sherman Lin, Chairman & CEO of the TDCC, also said, “As the Vice Chairman of Asia-Pacific Central Securities Depository Group (ACG), I am committed to promoting communication and deepening corporation among members. Both the MSCC and MCSD are ACG members, and we are pleased to share with them the notable successes of the Taiwan market. While the global economy is striving to recover from the pandemic, it is particularly meaningful to promote the development of the capital market to support the real sector. I believe, through such international cooperation, we can work with Mongolia to contribute to a more robust Asian capital market.”

This webinar serves to highlight the Taiwan capital market and its achievements in managing a crisis and retaining market sustainability. This is evidenced by the TWSE’s benchmark TAIEX index record high of surpassing the 14,000 hurdle; the number of TDCC e-PASSBOOK users also exceeded 1.69 million and is continuing to grow. Going forward, the TWSE and TDCC are deeply cognizant of the priority to enhance market efficiency, promote global connectivity and position the Taiwan capital market to be ever more competitive and appealing.