UPDATE 1-Taiwan Exchange sees six more TDRs for rest of 2009

* Expects six more TDRs in 2009 as cross-strait ties warm

* To cut TDR application time to weeks from months

* Restrictions on China used to keep Taiwan companies away

(Adds details, background)

By Lee Chyenyee

TAIPEI, June 16 (Reuters) - The Taiwan Stock Exchange (TSE) expects six more Taiwan Depository Receipt (TDR) applications this year, in a boost for the island's bid to attract more of its overseas-listed companies home, its chairman said on Tuesday.

"We've seen an increase in activity in IPOs and TDRs this year," TSE Chairman Schive Chi told reporters on the sidelines of a private equity forum. "Of course we think the more the merrier, and we've set a target of a total of eight TDRs for this year."

Currently, eight companies have a secondary listing on the TSE, including Hong Kong-listed Want Want (0151.HK) (9151.TW) and Ju Teng (3336.HK) (9136.TW), which issued shares in Taiwan this year.

Many Taiwanese companies had previously chosen to list in Hong Kong or Singapore due to rules that kept them from listing at home due to restrictions placed on Chinese investments.

But under the year-old administration of China-friendly President Ma Ying-jeou, many of those regulations have been eased or scrapped in a bid to boost the island's economy.

"We need to create good fundamentals in Taiwan to attract companies to return. Funds have already begun flowing in to Taiwan and cross-strait ties have also improved," said Schive.

He added that the exchange plans to shorten the application process for TDRs, or a secondary listing, from about two months currently to just several weeks later this year.

"TDRs will come very quickly because they are already listed elsewhere. Now it takes two months and we hope to shorten that further," Schive said.

(Additional reporting by Rachel Lee; Editing by Dhara Ranasinghe)