Tokyo Stock Exchange Continues Building Asia Alliance

by: Steven Towns

In today's Wall Street Journal, Andrew Morse comments on the Tokyo Stock Exchange's latest efforts to build its global image and alliance network in: Tokyo Exchange Expands Alliance With Shenzhen.

The Tokyo Stock Exchange and China's Shenzhen Stock Exchange will expand their initial 2003 information sharing deal to now include evaluating the prospects of jointly developing new products and information technology. The Shenzhen Exchange is the smaller of China's two exchanges with about half the market capitalization of Shanghai's. This is a small but important deal at a time when exchanges around the world are looking for ways to provide investors with more investment products and longer trading hours. Tokyo Stock Exchange officials have mostly been courting Asia region exchanges and have showed particular interest in attracting foreign listings such as the lucrative IPOs and overseas listings by Chinese firms. The Tokyo exchange plans to open an office in Beijing to recruit listings from Chinese start-ups.

Comment: The TSE has been taking a more active role in creating or expanding relationships with Asian stock exchanges in recent months, following the lead of NYSE Group (NYSE:NYX), which has been busy in Europe and now finalizing a deal to merge with Euronext NV. Last month the TSE signed a partnership agreement with South Korea's stock exchange and the Jiji press reports that next on the TSE's list are the Shanghai and Taiwan Stock Exchanges. In June, TSE president Taizo Nishimuro said he prefers Euronext NV merge with the NYSE Group instead of with Deutsche Boerse AG because once the Tokyo Exchange goes public over the next two or three years then the three could pursue a three-way tie-up.