The Taiwan Monthly

May 2021

Market & ETP Overview

Future development plans for the Taiwan capital market

The FSC and associated agencies launched several policies including the “Capital Market Roadmap”, “Green Finance Action Plan 2.0”, “Corporate Governance 3.0”, “Fintech Development Roadmap” and “Financial Cyber Security Action Plan” last year to elevate innovation in the financial sector, promote cross-sector integration, and loosen regulations. Under these policies, the TWSE rolls out its development directions for the Taiwan capital market as follows.


Strengthen primary market functions to support real economic development

In line with President Tsai’s core principle of innovation, the Taiwan Innovation Board (“TIB”) is expected to launch in Q3 of this year. The new board will embrace the six core industries, attract capital for companies to list on the TWSE, and strengthen the capital market to enhance economic momentum. Following the release of the TIB regulations at the end of March this year, the TWSE welcomed Taiwan's first TIB application on April 12.


Activate the market and increase efficiency and liquidity

Market making mechanisms are widely adopted to boost trading volume and liquidity around global stock markets. The launch of market-making system in late June aims to synergize eminent listed companies with low trading volume, thereby intensifying market momentum. The selection criteria is based on profitability, trading volume, turnover ratio and dividends, covering approximately 80 listed companies across various industries.


Attract domestic and foreign investment and augment global visibility

The TWSE continues to improve convenience and efficiency for foreign investment. Starting from April, FINI/FIDI registration and cancellation documents can be submitted by paperless means. The TWSE has also scheduled a series of investment conferences and corporate events to strengthen its connection with global investors as well as promotion of the Taiwan capital market.


Boost functions and competitiveness of financial intermediaries

Financial intermediaries play crucial roles in the prosperity of a capital market. The TWSE will work with associated agencies to advance information security and to strengthen overall information security resilience by establishing a computer security incident response team. In addition, other measures such as supporting digital transformation, SupTech and investment banking business for the securities firms are also being planned.


Encourage financial innovation and product diversity

With the central clearing system for OTC derivatives under construction, the TWSE keeps developing new indices and investment products. Moreover, the TWSE cooperates with other agencies to develop the supporting measures for the investment trust sector to launch REIT funds.


For further information, please contact Mr. Lin at