Taiwanese stocks spiked toward the end of the week on hopes of a potential stock-trading link between Taiwan and Shanghai pushed shares higher – a similar program between Shanghai and Hong Kong has helped support a rally in both markets.
Taiwanese authorities also recently introduced limits on foreign investments in the corporate debt market in an attempt to diminish inflows that strengthened the local currency.
“There is some speculation that foreign investors will move cash to the equity market from the debt market,” Andrew Tsai, an economist at KGI Securities Co., said in the Bloomberg article. “The rally is supported by speculation of a Shanghai-Taiwan stock connect and fund inflows betting on the Taiwanese dollar’s appreciation.”
iShares MSCI Taiwan ETF
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Max Chen contributed to this article.