2011-10-10
Face Value to Shares to be Repealed by Taiwan Stock Exchange
To attract more foreign investors, the Taiwan Stock Exchange (TSE) plans to end a decades-old policy that gives a NT$ 10 face value to shares, said Schive Chi (薛琦), chairman of the Exchange. According to him, the move follows international practices, where investors examine the net worth of shares, the market value and the earnings per share, rather than their face value.
The TSE meanwhile will also terminate a policy that adds the letters “KY” which stands for Cayman Islands in front of the name of the stocks of the foreign firms listed in Taiwan. “KY” will be replaced by the letter “F,” which aims at avoiding possible negative implication that the foreign investor detours for listing in Taiwan.
The relevant law is expected to be amended at the end of this year (2011). Schive announced that after the new law becomes effective, the new policy will apply to the foreign investors.
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