Taipei, March 2 (CNA) The Executive Yuan aims to add 85 new listed companies to the main board of the stock exchange and the over-the-counter (OTC) market in a bid to stir up investors’ buying interest and boost market turnover, according to the contents of a Cabinet stock market stimulus package.

In the stimulus package approved by the Cabinet Friday, the government is planning to come up with a wide range of measures to encourage companies to list themselves on the main board or on the OTC market.

In particular, the government plans to continue its efforts in high-tech development to create an environment suitable for companies that have good innovation, and to encourage them to raise funds in the local capital market.

In addition to high-tech firms, the government wants companies in the cultural and creative sector to trade their shares on the local bourse, a move that is expected to provide investors with more investment instruments.

Among the expected 85 newly listed companies, the government aims to attract about 30 foreign quality companies to launch listings in Taiwan, the package showed.

As of the end of January, a total of 810 companies were listed on the Taiwan Stock Exchange, while shares of 638 firms were traded on the OTC market.

Meanwhile, to push for “T-share” listings in the local bourse, the government will boost cooperation between securities authorities on the two sides of the Taiwan Strait, the package said.

“T-shares” refer to companies incorporated in China, such as those that are wholly or partly owned by Chinese investors and those that are owned by Taiwanese investors operating in China.

Meanwhile, the government will study how to introduce more financial products into the local market, including Chinese yuan-denominated securities, to encourage more investors to trade.

Under the stimulus package, the government is determined to strengthen corporate governance to help local listed companies secure better credit ratings from international credit rating firms, paving the way for higher international visibility.

(By Hsieh Chia-chen and Frances Huang)
ENDITEM/J