The Taiwan Monthly

Market & ETP Overview

Taiwan–Japan Cross-Border ETFs Debuted in September, Advancing Taiwan Toward Becoming an Asian Asset Management Center

Cross-border cooperation had long been a key driver of Taiwan’s capital market internationalization and was also essential to building a robust ecosystem for an Asian Asset Management Center. With the Financial Supervisory Commission (FSC) recognizing Japan in 2024 as the registration of the fund and the place where the offshore fund manager was based, the Taiwan–Japan cross-border ETF officially entered a new chapter. The Taiwan Stock Exchange (TWSE) had actively promoted this initiative since the previous year and achieved two-way cross-listings between Taiwan and Japan in September 2025, injecting new momentum into the Asian asset management market.

Since its launch in 2003, Taiwan’s ETF market had grown into the third largest in the Asia-Pacific region, demonstrating remarkable vitality. As of the end of August 2025, a total of 294 ETFs had been listed on Taiwan’s markets, with combined AUM reaching NT$6.77 trillion. Over the past decade, the market had expanded more than 30-fold, significantly outpacing the 5.4-fold growth of the global ETF market. This robust market foundation aligned perfectly with the impressive performance of Japanese equities, where corporate fundamentals continued to improve and yen depreciation had created tailwinds for exporters. Together, these factors had made Japanese stocks a key focus in the Asia-Pacific region and presented an excellent opportunity for cross-border ETF collaboration.

The Taiwan–Japan cross-border ETF initiative had made tangible progress. Nomura Asset Management Taiwan, in partnership with Nomura Asset Management Japan, had launched the first two-way cross-listed ETF in September 2025. Cathay Securities Investment Trust had also listed its ETF on the Tokyo Stock Exchange in September 2025. This two-way cross-listing mechanism not only offered investors a wider range of asset allocation choices but also helped domestic asset managers expand their international footprint and enhanced Taiwan’s visibility in global capital markets.

TWSE stated that with the official launch of Taiwan–Japan cross-border ETFs in September, Taiwan’s ETF market had entered a new stage of internationalization. Going forward, TWSE would continue to adopt a “from near to far” strategy, actively pursuing more regional cross-border ETF initiatives and related products, while supporting domestic managers in issuing products overseas linked to Taiwan equity indices or ETFs. By deepening cross-border cooperation and fostering product innovation, TWSE aimed to build more international cooperation platforms, further elevate the global profile and competitiveness of Taiwan’s capital market, and accelerate progress toward the goal of becoming an Asian Asset Management Center.