The Taiwan Monthly - Special Edition
Global Connection
TWSE devotes itself to attracting foreign investment
The Taiwan Stock Exchange is well-known for its high dividend yield (3.99% as of Aug 2017), high turnover rate (61.33% as of Sep. 2017) and reasonable PER (15.97 as of Sep. 2017). It therefore comes as no surprise that foreign investment finds our market highly attract with a market cap that has been growing from 30.36% in 2008 to 41.55 in September 2017, and the trading ratio for the same investor group also increased from 24.3 to 26.2% in the same period. To keep our market innovative, the TWSE has devoted itself on the following aspects.
- To ensure our trading mechanisms align with international practices. For example, continuous trading is expected to be adopted to replace the original call-auction mechanism. Plus, co-location services are expected to be introduced to the market by the end of this year.
- To enhance corporate governance of our listed companies, the TWSE introduced “The 2016 Corporate Governance Evaluation Award”. Taiwan’s ranking has progressed to 4th from 6th by the ACGA 2016 evaluation.
- To provide variable products, attracting more diverse companies to list on our exchange and to develop innovative products, to meet investor needs.
To attract more foreign investment, the TWSE hosts regional and global roadshows. On October 16 to 19, the TWSE just hosted a “Taiwan Corporate Day” in Hong Kong and Singapore, meeting with institutional investors and updating them on the latest trends in Taiwan’s capital market.
From November 13 to 14, the TWSE will host another “Taiwan Corporate Day” combined with the “Global Technology, Media and Telecom Conference” hosted by JPM in Hong Kong. Tokyo is next from December 7 to 8.
In all, the TWSE will continue to enhance the environment of Taiwan’s capital market and provide a liquid and lucrative market for investors.