BEIJING, July 22 -- The Securities and Futures Commission (SFC) of Hong Kong said Tuesday the Taiwan Financial Supervisory Commission (FSC) has approved the offering of the first Hong Kong exchange-traded fund (ETF) in Taiwan and its application to the Taiwan Stock Exchange for listing.

W.I.S.E.CSI 300 China Tracker, managed by BOCI-Prudential Asset Management Ltd, became the first Hong Kong ETF approved by the FSC following the exchange of the Side Letter to a bilateral Memorandum of Understanding (MOU) between the two financial regulators in May 2009, said the SFC in a statement.

The SFC has also granted an approval-in-principle to the first Taiwan ETF, Polaris Taiwan Top 50 Tracker Fund, to cross-list in Hong Kong via a feeder fund. The SFC said the final authorization and listing of the ETF in Hong Kong is expected to take place soon.

"The respective approval of the first Hong Kong and Taiwan ETFs by the FSC and the SFC marks the beginning of a strategic relationship that will bring long-term benefit to both markets," said Mr. Eddy Fong, the SFC's Chairman.

Fong added the SFC looks forward to closer cooperation with the FSC to facilitate market development on both sides.

Xinhua News Agency correspondents reporting from Hong Kong.