Sunday, October 28, 2007

Tokyo, Vietnam stock exchanges link up

The Tokyo Stock Exchange signed a deal Wednesday to cooperate with Vietnam's hot-performing bourse, including through possible cross listings of stocks on the two exchanges.

World stock exchange operators are increasingly linking arms to facilitate easier cross-border trading, while boosting their own competitiveness.

Under the accord signed Wednesday, the Tokyo Stock Exchange, Asia's largest bourse, will share information with the Ho Chi Minh City Stock Exchange and consider offering technical assistance, a TSE statement said.

The two bourses will also start discussion on listing of the two countries' stocks on each other's bourses, it said.

"This is an official and long-term commitment for further cooperation between the two exchanges," Tran Dac Sinh, president of the Vietnamese bourse, said in the statement.

TSE president Atushi Saito said: "By continuing to enhance cooperation with Asian exchanges in the future, we will keep striving to improve convenience for market participants."

Vietnam's main stock exchange was opened only in 2000 and has quickly shot up, with the benchmark index rising 145 percent last year, despite warnings by some market watchers that the market risks overheating.

Both the Tokyo and Ho Chi Minh City bourses signed cooperation agreements earlier this year with the London Stock Exchange.

The Tokyo bourse has also signed a similar deal with the New York Stock Exchange and acquired a stake of almost five percent in the Singapore stock exchange.

The TSE has indicated that it is open to the possibility of overseas exchanges taking a stake in the Tokyo bourse once it achieves its own initial public offering, which has been delayed due to a series of technical glitches. (AFP)