TAIPEI, May 12 (Reuters) - Taiwan’s Gre Tai Securities Market will by the end of this year sign a deal with the Eurex Exchange to provide cross-border exchange services in Chinese yuan-denominated bonds, Gre Tai representatives said on Monday.
The deal will allow European and Taiwan firms to offer bonds denominated in Chinese yuan on the other’s territory and trade such financial products between the two regions. The Gre Tai representatives did not specify when such trading would begin.
Gre Tai chairman Soushan Wu said that among all the markets issuing yuan-denominated bonds, Taiwan is the only one that boasts a trade surplus with the mainland, giving firms here a potentially large pool of yuan-denominated financial products for them to trade overseas.
Financial sector ties between Taiwan and mainland China have grown rapidly. Upto now, Taiwan has issued 12.1 billion yuan ($1.94 billion) worth of yuan-denominated bonds, also known as Formosa bonds, though it distantly trails other off-shore financial centres, Hong Kong, London and Singapore, in total volume. ($1=6.2280 Chinese Yuan) (Reporting by Roger Tung; Writing by Michael Gold; Editing by Clarence Fernandez)