The Taiwan Monthly

Mar. 2023

Market & ETP Overview

TWSE 2023 business outlook

Despite an uncertain global outlook for 2023, the Taiwanese economy is predicted to score more than 2.5% growth in 2023. With PE ratio around 11x and fundamentals of listed companies remaining robust, we look forward to a good year for Taiwan stock market. Highlights of the TWSE business outlook are as follows:

1.   Constructing ESG eco-system 
As a capital platform, the TWSE’s goal is to build an ESG eco-system incorporating all the stakeholders. The TWSE will further strengthen ESG information disclosure, helping enterprises conduct carbon inventory and disclosure, constructing an ESG information platform, and launching an ESG evaluation. Furthermore, it will also utilize ESG information and promote the development of ESG products as well as investor relationship, inducing funds into the cause of sustainable development. Finally, the TWSE will support engagement by private institutions and schools in the cause of sustainable development, cultivate related talents, encourage related R&D, and collaborate with peripheral securities units in pushing the sustainability transformation of securities and futures firms.

2.   Demonstrating home market advantages and enriching industrial clusters 
The Taiwan capital market features reasonable costs for listing and legal compliance, good liquidity, and most important, investor willingness to give tech and new economy industries reasonable valuation. Therefore, the TWSE strives to enhance domestic fund-raising environment, so as to keep enterprises staying in Taiwan and to make the best use of the home-market advantages. To facilitate the development of new industrial clusters, the TWSE is studying reclassification of listed companies' industrial sectors. The TWSE plans to highlight potential industries such as digital economy and green-energy technology, thereby attaining clustering effect and increasing investments. 

3.   Expanding international capital and listing attraction and network relationship
To support the development of overseas Taiwanese businesses, the TWSE listing service teams will explore potential prospect in major New Southbound Policy countries. Also, the TWSE has established an investor relationship maintenance task force, aiming to maintain long-term relationships with key investors. We will frequently visit Singapore, Tokyo, the U.S. and Europe. Additionally, the TWSE will actively take part in international meetings and affairs and reinforce relationships with exchanges for future collaboration. 

4.   Strengthening supervision of listed companies and extending application of emerging technology
Given continuing uncertainties and higher financial costs, the TWSE has been conducting extra supervision of the financial indicators of listed companies, such as the pandemic's influence on the operation of listed companies. Meanwhile, the TWSE will intensify application of AI and big data in market surveillance, to boost the efficiency and accuracy of such works.

5.   Enhancing information-security and digital transformation 
To prompt securities firms to strengthen information-security and response capabilities, the TWSE is revising penalty criteria, inflicting hefty penalties for information-security incidents resulting in investor loss or disrupting trading order. Concerning listed companies, the TWSE will further advocate installation of dedicated information-security specialists by mid-cap listed companies. To facilitate market supervision, the TWSE plans to set up a big data platform, covering listing, trading, as well as management of securities firms. The TWSE will also strengthen digital transformation and visualized data analysis. 

6.   Upgrading website service and information integration 
With the increasing popularity of index investing, the TWSE plans to install an integrated platform for ETPs in 2023, aggregating information and statistics from multiple sources and adding value with visualized analysis. The TWSE also plans to upgrade its website by switching to RWD (Responsive Web Design), with the higher compatibility for mobile devices, consistent visual image, and convenience for contents sharing, with the aim of offering a friendlier user experience. 

For further information, please contact Mr. Lin at