The Taiwan Monthly
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Taiwan Stock Exchange plans to promote Taiwan to be the Asian Asset Management Center in line with the government’s policy
In order to promote Taiwan into an Asian asset management center, Chairperson Jin-Lung Peng of the Financial Supervisory Commission (hereinafter referred to as the FSC) proposed five specific plans on September 10, 2024, with the key points as follows: 1. the plan of strengthening asset management and the proposal to establish a special financial zone; 2. the plan of integrating inclusive finance and sustainability to support the Taiwan Investment and Savings Account (TISA) for individuals; 3. the plan of wealth management promotion to promote family office institutions; 4. the plan for capital investment in public construction to guide private capital investment; 5. the plan of expanding investment in Taiwan to guide capital investment in national strategic goal related industries.
The FSC stated that it will achieve such policy goals through a six-year and three-stage plan, with two years for each stage to achieve “feeling the changes in two years, seeing the changes in four years, and achieving the goals in six years.” The stage of “feeling the changes in two years” will be achieved through large-scale regulatory loosening as well as market adjustments and cross-departmental cooperation, with nearly 40 regulations to be adjusted. The stage of “seeing the changes in four years” aims to significantly increase the size of Taiwan’s asset management and market participants. In the stage of “achieving the goals in six years,” it is expected that the achievements may win international recognition, and the market may possess regional competitiveness to become an Asian asset management center with Taiwanese characteristics.
In line with the government’s development policy, the Taiwan Stock Exchange (hereinafter referred to as the TWSE) plans to focus on three major strategies, including assisting securities issuing companies in their international development, launching diversified products to promote market development, and promoting international cooperation and cultivating market professionals together with institutions. A total of 13 work items will be launched, and through rolling adjustments, a dual focus of retaining funds and attracting investment will be adopted for investment in Taiwan and support of its industries, so as to attract more international capital and cultivate cross-disciplinary international financial talents to achieve the goal of building Taiwan into an Asian asset management center. Below is an introduction to the three major strategies and related promotion plans：
•Strategy 1: Assist securities issuing companies in their international development
Work item (1)：Promoting high-quality domestic and foreign enterprises to join Taiwan’s capital market
Work item (2)：Constructing a friendly financing environment for issuing companies in the capital market to conduct international mergers and acquisitions or strategic cooperation
Work item (3)：Enhancing the visibility of high-quality securities issuing companies, and increasing the attention of domestic and foreign investment institutions and asset management companies
Work item (4)：Assisting securities issuing companies in aligning their ESG policies with international development trends
Work item (5)：Guiding TWSE- and TPEx-listed companies to enhance their corporate value, in order to attract more international capital inflows and strengthen their ability to create long-term value
Work item (6)：Promoting the IR ESG engagement platform to assist in improving the connectivity between small and medium listed companies and institutional investors
•Strategy 2: Launch diversified products to facilitate market development
Work item (1)：ETF related products
Work item (2)：Fund-structure REIT products
Work item (3)：Cross-border products and cooperation
Work item (4)：Assisting securities firms in their development
Work item (5)：Building an integrated and transparent Investment InfoHub, and actively conducting investor advocacy to practice inclusive finance
•Strategy 3: Promote international cooperation and cultivate market professionals together with institutions
Work item (1)：Promoting international cooperation among exchanges
Work item (2)：Collaborating with the Securities Association, Futures Association, SITCA, Securities & Futures Institute, and Taiwan Academy of Banking and Finance, in order to plan the cultivation of asset management and international talents in Taiwan in a systematic manner
In summary, in order to comply with the goal of the FSC to promote Taiwan as an Asian asset management center, the TWSE has formulated clear strategies and action plans to fully support the growth and internationalization of Taiwan’s capital market by assisting securities issuing companies in their international development, launching diversified products to promote market development, and promoting international cooperation and cultivating market professionals together with institutions.
The promotion of these measures will not only help retain domestic asset management talents, attract international capital inflows, and enhance the depth and breadth of Taiwan’s capital market, but also cultivate cross-disciplinary financial professionals and enhance Taiwan’s competitiveness in the global asset management field. Adhering to the goal of “feeling the changes in two years, seeing the changes in four years, and achieving the goals in six years,” the TWSE believes that with the joint efforts of the government, industry and market, Taiwan will definitely become an Asian asset management center with regional competitiveness and characteristics, which will create a new milestone for Taiwan’s economic development.
For more information, please visit the following link
https://www.twse.com.tw/market_insights/en/detail/8a8216d69236c2e301929eb8f0d901b6