The Taiwan Monthly

Mar. 2024

Global Connection

Taiwan Stock Exchange launches 2024 overseas tour to attract global capital: Europe trip targets heavyweight investor institutions

The Taiwan stock market showed robust performance in 2023, marked by significant turnover volume surges and price gains. Foreign investors notably reversed three consecutive years of net selling, recording net buying of over TWD 275.4 billion. On a mission to expand international funding sources in 2024, the Taiwan Stock Exchange (the “TWSE”) is expected to visit more than a dozen prominent institutional investors in Europe in March to further strengthen international investor relations.

Thanks to its solid fundamentals, good corporate governance, and the investment trend in artificial intelligence (AI), the TAIEX, the
market value weighted index on the TWSE, rose by 26.8% in 2023, outperforming major international stock markets in the US and Europe. Its average daily turnover increased by 16.1% to TWD 281.2 billion, with its total market capitalization reaching TWD 56.84 trillion.

Foreign capital plays a decisive role in Taiwan stocks. According to the TWSE, as at the end of 2023, foreign capital from the UK and Europe accounted for more than 37% of the market value of Taiwan stocks, becoming a main source of international funds. 

To underscore its commitment to deepening cooperation with European market participants and forging deeper relationships with investors, Chen-Shan Chang, Director-General of the Securities and Futures Bureau of the Financial Supervisory Commission, Taiwan’s capital markets regulatory body, and Sherman Lin, Chairman and CEO of the TWSE, will lead a delegation to Europe in early March. The team will visit key stakeholders, including more than a dozen prominent institutions such as stock exchanges, clearing houses, custodian banks, index companies, institutional investors with substantial holdings in Taiwan stocks, potential large investment institutions, major asset management companies, and financial service institutions.

The TWSE will arrange one-on-one meetings with institutional investors and financial market infra structures in London, Luxembourg and Frankfurt, in order to provide updates on key information regarding the Taiwan securities market, highlighting the advantages and development opportunities within the Taiwan stock market. The officials will address all questions and concerns to boost investor confidence and seek advice from the investors. As well as exchanging ideas and exploring potential cooperation possibilities with crucial Europe institutions.

The TWSE will embark on a visit to London, marking the first such visit in seven years,” said Sherman Lin. “During the trip, the TWSE will also conduct in-person exchange activities with major European exchanges, such as London and Frankfurt, for the first time. The highly anticipated trip is of great significance to both sides and is expected to yield exciting outcomes.”

The TWSE also plans to hold an investment seminar in London on March 5, offering investors an efficient way to understand Taiwan’s capital market. This seminar will provide international investors with a valuable opportunity to delve into Taiwan’s booming financial ecosystem, exploring dynamic developments, innovative sectors and promising investment opportunities.

Overall, the TWSE’s visit aims to forge connections with prominent institutional investors and major European exchanges, showcasing the enormous opportunities of Taiwan’s capital market. It underscores Taiwan’s ongoing commitments to actively deepen international investor relations and promote securities investment measures for enhanced international cooperation.