News Archive

Tokyo and Shanghai bourses in talks
2002/08/24

The Tokyo Stock Exchange (TSE) and the Shanghai Stock Exchange (SSE) are in talks to form an alliance that could eventually result in possibilities for Japanese and Chinese companies to list on the other country's market, Financial Times (FT) reports on Friday.

TSE-director Eisuke Nagatomo stated on Thursday that the talks concentrated initially on non-controversial areas such as information and technology sharing, FT writes. Though if the talks proceeded as planned, the relationship should deepen to allow joint listings, he added.

SSE vice-president Wu Yalun is expected to visit Tokyo in September to promote its bourse to Japanese firms expanding their presences in China, Reuters reported on Thursday, citing the Nihon Keizai Shimbun newspaper.

A formal announcement of the alliance is expected by the end of this year, according to FT. After the possible agreement, the bourses would need to seek approval for it from the China Securities and Regulatory Commission (CSRC), which in the past slowed moves by the two exchanged to get together, the newspaper writes.

Shanghai so far always has given more attention to creating links with the Hong Kong and New York stock exchanges, and the ones in Singapore and London. While Japan never really concentrated extensively on attracting business from the mainland, FT mentions. However, the talks seem a logical result of the growing interest in each other's markets in the past years.

The SSE's total market capitalization of listed firms is less than 20 percent of the TSE's, Reuters reports.

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