The Taiwan Monthly

Market & ETP Overview

Taiwan-Japan Cross-Border ETFs Create a Win-Win Situation for the Capital Market

To promote Taiwan as an Asia Asset Management Center, the Financial Supervisory Commission fully supports the cross-listing of Taiwan-Japan ETFs. It officially announced that Japan has been recognized by Taiwan as the registration of the fund and the place where the offshore fund manager. In the future, Taiwan and Japan ETFs will be able to cross-list on each other's exchanges, further enhancing market communication and development.

 

The TWSE stated that this initiative lays a solid foundation for the cross-border listing of ETFs between the Taiwan and Japan exchanges. The TWSE expressed gratitude for the proactive support of the Japan Exchange Group and the enthusiastic participation of asset management companies, with a goal to achieve the first cross-border ETF listing between Taiwan and Japan by the third quarter of next year.

 

This year, both the Taiwan and Japan stock markets have performed remarkably well, with year-to-date increases of over 27% and 15%, respectively, as of December 19, ranking first and second in the Asian markets. With over 300 ETFs listed, Japan Exchange Group boasts the largest ETF AUM in Asia. This collaboration not only introduces Japan's diverse ETFs to Taiwan, injecting new vitality into the market, but also marks the first time Taiwan ETFs will enter the Japanese market, attracting more foreign capital and expanding overseas opportunities.

 

The TWSE emphasized that the two exchanges have a longstanding and close partnership. This cross-border ETF collaboration is highly anticipated and is expected to deepen the connection between the two capital markets, fostering regional economic prosperity and development.

 

In recent years, Taiwanese investors have increasingly focused on global asset allocation, aiming to diversify risk and seek returns from high-growth markets, leading to surging demand for foreign financial products and significant capital outflows. Cross-border ETF listings expand the product lineup, meet the demand for diversified investments, and enhance market internationalization, attracting foreign capital and boosting the scale and depth of the ETF market, thereby supporting long-term stability. The TWSE will continue to promote innovative products, creating a  tripling win scenario for investors, industry, and the market, accelerating Taiwan’s progress toward becoming an Asia Asset Management Center.