The Taiwan Monthly

May 2020

Global Connection

Taiwan Stock Exchange cooperates with Quantum International to launch Taiwan CEO Week on Air to highlight Prospects to Global Investors

In order to augment communication between Taiwan's listed companies and institutional investors worldwide, the Taiwan Stock Exchange, Quantum International (QIC) and Capital Securities jointly hosted the online investment forum Taiwan CEO Week on Air from April 6 to April 10. This was the first time that a video conferencing platform had been adopted. CEOs of 33 of Taiwan's companies engaged in real-time discussion with global investors. The new format is to be used during the pandemic prevention period.

 

Instead of physical venues, this event was the first large-scale online investment forum focusing on Taiwan's stock market. The one-week event attracted a total of 211 institutional investors worldwide to engage in 925 meetings with 33 Taiwan public companies; notable Taiwanese companies were introduced to international investors through this new approach.

 

The online opening ceremony was hosted by TWSE President Lih-Chung Chien. Participating companies were positive to the new event format. President Chien said that the TWSE has always welcomed innovation. The Taiwan CEO Week on Air was designed to serve public companies and overseas institutional investors. During the pandemic outbreak, the online meetings can facilitate many public companies to feature their prospects to global fund managers, and to highlight the opportunities in Taiwan's capital market. The event also showcased the resiliency of Taiwan's technology industry, that is, the ecosystem’s integration and efficiency in creating and driving technology solutions.

 

During the event, the TWSE attested to the long-term value of exceptional governance and profitable dividends of Taiwanese companies. For example, stocks on the TWSE keep a growth momentum and offer a consistent dividend yield of up to 4%. In terms of trading value, foreign institutional investors have grown to around 26.4 percent, with a market cap of over 40 percent. The TWSE also engaged in conversations with several leading asset management companies to gain a deeper understanding of their perspectives. The fund managers in attendance expressed strong interest in the recent measures to open up Taiwan's capital market, fully demonstrating their attention to the market.

 

The TWSE pointed out that during the pandemic, financial markets have become susceptible to noise which creates fluctuations; thus, it has become even more important for companies to maintain sound investor relations. The TWSE already provides comprehensive online services to ensure that domestic investors can obtain the latest information on listed companies. The online event further enabled international institutional investors to gain a deeper understanding of the current operations of Taiwan public companies and the rigorous approach of Taiwan's epidemic control measures, which strengthen investor confidence in the Taiwan market.

 

During the Keynote speech, QIC pointed out that there are several long-term impacts of COVID-19 in Taiwan, such as reversal of HQ migration to China, bolstering diplomatic support for Taiwan, falling reliance on China, rising labor costs, the boost in support for the pharma sector, and hightened demand for the communications sector. The Taiwan corporate balance sheets are among the most unlevered, which offers more stable financial prospects during a time of uncertainty.  

 

The online opening and keynote speeches of this event can be found at the following link.

https://webpro.twse.com.tw/WebPortal/vod/104/

 

For further inquiries, please contact Mr. Tsai at 1193@twse.com.tw