"We are now moving into the stage of executing the bond market of the planned offshore bourse, as it isn't as involved in the complex cross-strait relations," commission spokesman Lin Chung-cheng stated.

The plans for a new exchange are in response to the departure of a number of local manufacturers to mainland China, something that is increasingly accompanied by fund-raising in Hong Kong or other overseas markets. The bourse will be launched in two stages: a stock exchange, with an undefined launch time, and the bond market, which is scheduled to open early next year.

The FSC will over the next two months begin to market the bond platform, which will trade in US dollars.

According to Lin, the offshore bond market is aimed at the nation's insurers and foreign institutional investors with yields from offshore trading being classified as tax-free overseas income. He added that the offshore business units of local banks will be able to assist both their overseas Taiwanese corporate clients issue bonds traded traded on the platform in US dollars.

It is hoped by the Taiwanese authorities that the new offshore bourse will rival other major Asian finance centres such as Hong Kong and Singapore as a regional fundraising hub.

"The offshore bourse is expected to raise Taiwan's visibility in the international capital market and enhance fund inflows," stated the commission's chairman Kong Jaw-sheng last week.