Day 1： November 25, 2002 (Mon)

Chinese Taipei Economic Situation: Challenging 2008－Six- Year National

      Development

Issue：10:50 - 11:30

In 2001, under the impact of the slowdown in U.S. economic growth and Taiwan’s domestic difficulties, compounded by the fallout from September 11 and the damage wreaked by destructive typhoons, exports from the island fell, industrial production declined and unemployment climbed steeply.

With stimulus packages taking effect in many countries, the global economy shows promising signs of recovery in the near future. This would help Taiwan’s economy to also move out of recession. Moreover, Taiwan’s accession to the WTO and investment under the six-year national development plan will boost Taiwan’s trade expansion and economic growth.

Outlook of Taiwan Capital Markets

Issue：11:30 – 12:00

The capital market has been an important driving force in the success of Taiwan’s energetic economy. To further develop the economy, Taiwan has in recent years waked towards the goal of establishing itself as an Asia-Pacific financial center. Due to the joint efforts of the public and private sectors, the capital markets have undergone a tremendous transformation.

Since our economy is highly export-oriented, increased international exposure is essential to develop Taiwan’s capital markets. The Securities & Futures Commission (SFC) has taken the initiative to participate in many events of global securities-related organizations (IOSCO etc.). To facilitate cross –border capital transactions, the SFC has signed a number of Memorandums of Understanding (MOU) for the purpose of information interchange to counter inter-market illicit activities

Future of Corporate Disclosure: A Lesson from Enron et. a1.

Lecture：14:00 - 15:05

How to Improve Corporate Transparency to Build Public Trust

Lecture：15:25 - 16:30

The collapse of Enron, the implosion of Andersen, and recent revelations of corporate misdeeds in America and around the globe have shaken public trust in capital markets and brought corporate activities to the world’s attention.

The needs of investors and other stakeholders for more and better information about corporate performance, now underscored by a lack of trust in those responsible for reporting the information, have led to a greater demand for improved corporate transparency.

Both lectures offer a vision of future reporting based on a revised model for corporate disclosure underpinned by transparency, accountability, and individual integrity.

Day 2： November 26, 2002 (Tue)

Introduction to Taiwan Securities Markets

Ø Taiwan Stock Exchange Corporation（TSEC）

Issue：09:00 - 09:30

Taiwan Stock Exchange（TSEC）began operations in 1962. At the end of Sept. 2002, TSEC had 636 listed companies with market cap. topping NT$8,227 billion(USD238 billion), ranking it 12th among the world’s stock exchanges. In addition to stocks, TSEC also trades government bonds, corporate bonds, mutual funds, warrants and depositary receipts.  The trading value of stocks amounted to NT$1,027 billion (USD 29.8 billion) as of September 2002 with average daily trading value reaching NT$51 billion (USD1.48 billion).  Most stock trading goes to the listed IT companies. The trading value of TSEC stock market places it in the top ten of stock exchanges in the world.

Ø Gre Tai Securities Market（GTSM , Taiwan OTC Market）

Issue：09:40 - 10:10

Gre Tai Securities Market was established as an alternative market to TSEC. Its goal is to provide a liquid and efficient securities market as well as working for the ultimate benefit and protection of investors. Inspired by NASDAQ, GTSM has sought to foster a robust capital market for less-seasoned, but perhaps faster-growing, small-and-medium-sized enterprises, mainly from the high-tech (primarily information technology) sector. Since GTSM is the only market that permits OTC trading in Taiwan, bond trading is also the highlight of GTSM. At the end of August 2002, the bond trading value was NT$12 trillion (USD$ 348.2 billion), the number of companies listed on GTSM had reached 478, and the average daily trading value in the primary market was NT$233 million (USD$ 6.76 million).

Yuanta Core Pacific Securities Co., Ltd.

Visit：10:50 - 11:30

Taiwan Ratings Corporation rated Yuanta's long-term and short-term credit as twA- and twA-2, respectively; both were the highest among Taiwan's securities firms. Yuanta's profitability is evidenced by the fact that foreign investors have increased their holdings in Yuanta recently, giving the company the highest rate of share ownership by QFlls.

Development of Fixed-Income Securities Markets in Emerging Market

    Economies

Lecture：14:00 - 15:05

Policy makers and market participants in emerging economies often focus attention on the development of domestic equities markets as a means of raising capital to finance private investment. In developed economies, however, debt capital markets often dwarf equities markets in size and importance. The development of broad, deep and liquid debt capital markets is essential to reducing dependency on foreign sources of capital and providing sovereign, corporate and sub-sovereign issuers with the lowest possible cost of funds. This session will address questions such as: What are the economic and legal prerequisites to efficient fixed-income markets? What are the essential elements of sound debt capital markets? How should policy makers and market participants build fixed-income market infrastructures? How important is secondary market liquidity? How should debt capital markets be regulated?

Infrastructure of Fixed-income Securities Markets--The Taiwan Experience

Lecture：15:25 - 16:30

This lecture will introduce the historical development of Taiwan’s fixed income securities market as well as its current status and future prospects. The primary and secondary markets of fixed income securities have changed a great deal in recent years. In light of the importance of fixed income securities to our economy, the government has adopted measures to boost the market.  New policies are also under consideration, which, once implemented, will further enhance the liquidity and efficiency of fixed-income markets. The lecturer will review the weakness and strength of our fixed income securities market and conjecture on the direction of its future development.

Day 3： November 27, 2002 (Wed)

Globalization of Corporate Governance

Seminar：09:30 - 12:00

Corporate Governance has been identified as a priority issue since 1997 after the Asian financial crisis. Post-crisis reform is well under way throughout Asia. However, the crisis in Corporate America has now put the issues under a spotlight. This seminar will examine the impact arising from Enron and key corporate governance issues in a Post-Enron environment.

Main issues for discussion:

l   Board Independence and Company Performance

l   Pay at the Top: Executive and Board Compensation

l   Business Ethics vs. Market Integrity

l   Cross-Border M&A and Corporate Governance Challenges

l   New Measures of Corporate Governance Evaluation

l   Global Shareholder Participation and Cross-Border Shareholder Activism

l   Criminalizing Corporate Behavior

Taiwan Futures Exchange Corp. (TAIFEX)

Visit：14:00 - 15:00

To provide investors with hedging tools, the TAIFEX offers the Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) Futures, Mini-TAIEX Futures (MTX), the Taiwan Stock Exchange Electronic Sector Index (TE) Futures, the Taiwan Stock Exchange Financial Sector Index (TF) Futures, and the Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) Options. Stock options will be added to the product lines in the near future.

The Exchange has adopted a computerized trading and clearing system that provides market participants with an efficient price discovery function.

The average daily trading volume of the TAIFEX for the year 2001 was 18,396 lots, which ranked it as the world’s No. 29, but the percentage growth figure was 158.73%, or No.3 in the world.

Taiwan Securities Central Depository Co., Ltd. (TSCD)

Visit：15:30 - 16:30

Taiwan Securities Central Depository (TSCD) was established in October 1989 and began operations in January 1990. The services provided by TSCD include book-entry of securities transaction; the clearing and settlement of securities traded on centralized and OTC markets; the clearing and settlement for both cash and securities for the emerging stocks, handling computer processing for the clearing of futures markets; registration of securities issuing in dematerialized form; and computer processing of book-entry for participants. TSCD is also entrusted by the Securities and Futures Commission (SFC) to conduct audits of shareholders’ affairs in issuing companies. TSCD conducts its operations with the most advanced information system, the most complete business plans and the most efficient operating procedures.

Day 4： November 28, 2002 (Thu)

Cross-Border Linkage - Dual Listing

Lecture：09:30 - 10:35

A number of notable changes have taken place in the capital markets in recent years, including demutualisation of exchanges, mergers and consolidation of exchange structures and trading, and cross-border linkages.

Of these various market developments, Hong Kong Exchanges and Clearing Limited (HKEx) is an example of a demutualised exchange and it has also been a publicly listed company in Hong Kong since June 2000. Even before the merger of the various exchanges in March 2000, the Stock Exchange of Hong Kong took the initiative in exploring possible cross-border opportunities; included are allowing overseas incorporated companies other than those recognized under the Listing Rules to be listed in Hong Kong, and the recent proposal on a cross listing facilitation programme with the London Stock Exchange.

However, cross border linkage between exchanges is often easier said than done.  A number of issues have to be overcome in order for it to be successful.  Regulatory philosophy, jurisdictional company laws and regulations, disclosure and ongoing compliance requirements and the culture of different companies are just a few of the factors that require careful consideration and detailed analysis.

Cross-Border Linkage – Bilateral Trading

Lecture：10:55 - 12:00

Mrs. Ong will give a presentation of the Singapore Exchange experience in the successful launch of the world’s first cross-border integrated exchange-to-exchange co-trading linkage between Singapore Exchange and Australian Stock Exchange. Her presentation includes the linkage business model, trading and settlement structures and the regulatory framework of this co-trading linkage.

Hsinchu Science-based Industrial Park

Ø Taiwan Semiconductor Manufacturing Company (TSMC)

Visit：15:30 - 16:30

TSMC (Taiwan Semiconductor Manufacturing Company) is the world's largest dedicated semiconductor foundry, providing the industry’s leading manufacturing capacity, processing technology, library and IP options, and other leading-edge foundry services. TSMC currently operates one twelve-inch wafer fab, five eight-inch wafer fabs and one six-inch fab. The company also has substantial capacity commitments at a wholly-owned U.S. subsidiary (WaferTech) and two joint-venture fabs (Vanguard and SSMC). TSMC’s corporate headquarters are in the Hsin-Chu Science-Based Industrial Park in what is referred to as Taiwan's "Silicon Valley."

 Ø  Microelectronics Technology Inc. (MTI)

 Visit：17:00 - 18:00

Microelectronics Technology, Inc. (MTI) was founded in 1983 by eight expatriate engineers who had returned from leading high-tech firms in Silicon Valley to establish Taiwan’s first microwave technology firm. Headquartered in the Hsinchu Science Park in Taiwan, MTI designs, manufactures and supplies a broad range of microwave integrated circuit products used for satellite broadcasting, communications and telecommunications. Capitalizing on over fifteen years of expertise in microwave technology, MTI has evolved from a microwave component manufacturer to a global provider of wireless communications sub-system and systems.

MTI’s products include Very Small Aperture Terminal (VSAT), Direct Broadcast Satellite (DBS) Receiving Equipment, Digital Microwave Point to Point Radios, Broadband Wireless Access Point to Multi-Point Radios and Mobile Base Station Transceivers and Modules.

Day 5： November 29, 2002 (Fri)

Global Overview of Asset Securitisation

Seminar：09:30 - 12:00

The "Global Overview of Asset Securitisation " session in the TAICAMS conference features three presentations by three long-time participants in securitisation. The session is designed to provide perspectives on securitisation in the Pacific and Asian market from different angles.   Mr. Wen-Dar Chen of JPMorgan Chase-New York will speak on JP Morgan's experience of approaching the Asian (including Taiwan) markets. He will also share with us his views on the impact of securitisation on the Asian financial communities. Mr. Hwa-Ping Chang of Societe Generale-Tokyo will speak on his experience of setting up a deal in Taiwan, the problems encountered and the solution to the problems. He will also compare his experiences in Taiwan and Japan. Ms. Diane K.Y. Lam of Standard & Poor’s-Hong Kong will give us her insights on securitisation in the Asian markets from a rating agency's perspective. She will address the problems that rating agencies often face in the Asian markets and the solutions to the problems.

Market Integration

Lecture：14:00 - 15:05

Market integration is a phenomenon which has occurred in some markets. It happens horizontally and vertically. The complementary nature of cash and derivative products has triggered the integration of cash and derivative units of some exchanges and financial intermediaries.

Horizontal integration has the advantage of creating synergy in operations management, product and market development, and risk management. For markets which are vulnerable to shocks created by freedom of capital flow, prudent risk management is a key element of financial market stability. Trade execution, clearing, settlement, custodian and payment methods are the elements relating to a transaction. Vertical integration of some of these elements of the transaction chain can be considered if this will result in lowering of overall costs and better risk management.

In any market integration, the cultural differences among organizations need to be addressed. The support of industry regulators is a key factor in successful market integration.

Cross-Markets Surveillance

Lecture：15:25 - 16:30

Normally, market surveillance focuses on price manipulation and insider trading. The emphasis may shift to one end or the other in cross-market scenarios, depending on the inter-relationship of the markets involved. Difficulties encountered in surveillance across the markets and borders include lack of coordination, discrepancies in trading rules and legal barriers against speedy data sharing, if permissible at all. In this talk, the lecturer will address these issues and propose some counter-strategies.

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