(May 31 – 15:40 ET) – While the rest of the world talks alliance and merger NASDAQ is actually getting on with it, launching its programs to trade Asian stocks.
Today NASDAQ announced that it and Hong Kong Exchanges and Clearing Ltd. are starting a pilot program to quote and trade seven NASDAQ stocks in Hong Kong. The seven stocks are: Amgen; Applied Materials; Cisco; Dell; Intel; Microsoft; and Starbucks. They were picked because they are some of the largest NASDAQ stocks with strong business interests in Asia.
The NASDAQ shares are being admitted for trading only, they are not formally listed on the Stock Exchange of Hong Kong (SEHG), and NASDAQ retains regulatory responsibility. The SEHK trades between 22:00 ET and 04:00ET, and the stocks will be traded in Hong Kong dollars.
“This is a step forward in the development of global trading of the world’s leading stocks,” said NASDAQ chairman and CEO, Frank Zarb. “As our companies pursue business opportunities globally, it makes sense that they offer their stock globally, reinforcing their brand names in the minds of consumers and investors and having the opportunity to access a lower cost of capital.”
NASDAQ International’s president, John Wall added, “This is a pilot program. We hope to learn what works and what doesn’t. We will be watching to see how investor interest develops.”
NASDAQ’s other Asian venture, NASDAQ Japan Inc., is also chugging ahead. It is slated to begin trading on June 19 in its section of the Osaka Securities Exchange, with as many as eight companies making the debut. NASDAQ Japan is a joint venture between NASDAQ and Japanese conglomerate Softbank Corp.
Tatsuyuki Saeki, president of NASDAQ Japan, said he expects about 10 new companies to list on the exchange each month through the rest of the year, for a total of about 70 by the end of 2000. The listings would include dual listings and market transfers, he said.
A joint website by the SEHK and NASDAQ can be found at www.porttracker.nasdaq-sehk.com.
-James Langton