SFB and TWSE shine spotlight on Taiwan's capital market with highly-anticipated "Taiwan Day" in London
The visit included meetings with dozens of influential European institutions, ranging from exchanges, index companies, investment institutions, and large asset management firms.
LONDON and HONG KONG and SINGAPORE, March 5, 2024 /PRNewswire/ -- In early March, Chen-Shan Chang, Director-General of the Securities and Futures Bureau (the "SFB") and Sherman Lin, Chairman and CEO of the Taiwan Stock Exchange (the "TWSE") led a team to Europe, marking the first foreign investment attraction trip of the year. The visit included meetings with dozens of influential European institutions, ranging from exchanges, index companies, investment institutions, and large asset management firms. A much-anticipated highlight was the "Taiwan Day" event held on 5 March, which brought together over 50 prominent investors from the UK to gain insights into the latest market reform measures and the outlook for Taiwan's stock market.
Held in London, the "Taiwan Day" proved to be a resounding response to the recent call by Dr. Tien-Mu Huang, Chairperson of the Financial Supervisory Commission (the "FSC"), for securities-related institutions to continuously enhance international connectivity and promote the strengths and reforms of Taiwan's capital market. During the event, the prominent European institutional investors in attendance were highly impressed by a wide array of strengths of Taiwan's stock market, such as its high-tech cluster characteristics, outstanding ESG performance, and foreign investment-friendly environment.
Taiwan's representative for the UK, Vincent Chin-Hsiang Yao shared how the pandemic has underscored the crucial role of Taiwanese enterprises in the global supply chain. The "Taiwan Day" not only provided participants an opportunity to gain a profound understanding of the advantages offered by Taiwanese enterprises, but also aimed to foster a solid foundation for enhancing the ties between Taiwan and the UK and promoting mutual prosperity.
Chang, in his articulation, highlighted Taiwan's commitment to attract foreign investment in recent years, as demonstrated by the joint efforts with the TWSE to visit institutional investors in major financial centers around the world since last year, and the aspiration to establish Taiwan's capital market as a foreign investment-friendly environment through direct dialogue in the future.
Lin continued by illustrating the UK's role as a substantial investment source for Taiwan, and the Taiwan-UK partnership further cemented by the "Bilateral Enhanced Trade Partnership Arrangement" signed in last November. Going forward, Taiwan will continue to strengthen the development of its high-tech industry, create an ESG-friendly environment, and actively seek feedback from investors to consolidate the role of Taiwan's capital market.
Shin-Chung Chen, Senior Vice President of the TWSE, took the floor to present the compelling attributes of Taiwan's capital market. These include Taiwan's robust economic development with a projected GDP growth rate of over 3% in 2024 as well as the prominent rankings on a global scale. According to data of the World Federation of Exchanges, Taiwan's stock exchange ranks 7th, 12th and 16th in terms of turnover, trading value and market capitalization, respectively. In 2023, over 80% of listed companies distributed cash dividends and foreign ownership accounted for over 40%. Additionally, Taiwan listed companies and emerging technology firms play a pivotal role in the up and midstream supply chain of artificial intelligence (AI). These companies not only prioritize ESG-related development, but also maintain a steadfast commitment to continuously fostering a foreign investment-friendly environment which welcomes international investors into Taiwan's market.
Kuo-Jung Cheng, Deputy Director of the SFB, then provided a comprehensive introduction to a series of investor-friendly initiatives poised to attract overseas capital into Taiwan's capital market, enhancing the appeal of Taiwan's market among foreign investors through more diversified investment opportunities, flexible sources of investment funds, and convenient digital services. Cheng also gave an in-depth overview of recent key regulatory reforms and forward-looking policies related to sustainability, green finance, and net-zero emissions, underscoring Taiwan's commitment to aligning its market with international standards, all the while leading market participants in promoting the characteristics and advantages of Taiwan's market.
Following the meeting, the TWSE arranged one-on-one sessions with investors to delve into specific areas of interest, including ESG and trading systems. These sessions allowed the TWSE to actively respond to investor questions and gather feedback with a view of continuing to bolster investor confidence. The institutional investors attending the event responded positively to the resilience of Taiwan's economic fundamentals, its central role in the semiconductor and information and communications technology (ICT) industries, and the focus on the development of the ESG ecosystem. They also highly appreciated the authority and the TWSE for their attentive listening to investor opinions, proactive response, and thorough explanations on important issues of concern.
Looking ahead, the TWSE will continue to encourage foreign investment opportunities and to promote the investment niche offered by Taiwan stocks, actively seeking feedback from global key institutional investors for the development of Taiwan market. Through these efforts, the TWSE aims to enhance Taiwan's international presence and deepen the investment community's understanding of the advantages and resilience of Taiwan's capital market.
SFB and TWSE jointly host "Taiwan Day" event in London
About TWSE
The Taiwan Stock Exchange (the "TWSE") started operations on February 9, 1962. The TWSE is responsible for operating and advancing Taiwan securities market. The TWSE's primary business operations include listing, trading, settlement and surveillance. These comprise listing promotion and review, post-listing supervision and corporate governance, maintaining market trading and order, securities firms' services, investor protection, clearing and settlement operations, safeguarding against market defaults and the monitoring of illegal transactions. The Exchange provides comprehensive services to the stock market.
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