The Taiwan Monthly
Global Connection
Taiwan Stock Exchange wraps up successful east coast U.S. roadshow
The Taiwan Stock Exchange (TWSE) recently concluded its East Coast U.S. roadshow, meeting with a diverse range of institutions. During the visit, TWSE representatives visited 18 institutions, including 2 exchanges, 1 clearing and settlement institution, 2 index companies, 5 major fund and asset management firms, 4 custodian institutions, 2 potential large investment institutions, 1 proxy advisory company, and 1 investment bank. In addition to highlighting the resilience and high dividend yield of the Taiwanese stock market, TWSE presented the future business prospects, such as ESG ecosystem, carbon trading, and the innovation board. They also addressed investor-friendly measures of great interest, including topics like potential for allowing multiple custodian banks and simplification of foreign investor registration, aiming to bolster investor confidence.
Following the meetings, key institutional investors expressed positive responses regarding Taiwan's overall fundamentals and the prospect for the Taiwan Stock Exchange. They appreciated the proactive approach of the regulatory authorities and TWSE in engaging with investors, listening to their feedback, and addressing important concerns.
Foreign investors play a pivotal role in the Taiwan stock market. As of the end of 2022, foreign investors held 41% of Taiwan's market value, with the United States being the largest contributor. In mid-September, Mr. Cheng-shan Chang, Director-General of the Securities and Futures Bureau, and Mr. Sherman Lin, Chairman of the TWSE, held a series of meetings with heavyweight institutional investors in New York and Boston, delving into Taiwan's market development and investment advantages.
During the roadshow, TWSE organized one-on-one meetings with significant investors to update them on critical information about Taiwan's securities market, introduce Taiwan's market advantages and development, and stimulate interest in investing in the Taiwanese stock market. The delegation also responded positively to concerns, strengthening confidence in the Taiwan market and gathering valuable insights for Taiwan's capital market.
Regarding the fundamentals of the Taiwan stock market, TWSE representatives detailed the stable revenue and profit performance of listed companies, high dividend yield that ranks among the top globally, and recent developments such as the ESG ecosystem, carbon trading, the Taiwan Innovation Board, and adjustments to industry classifications. They emphasized the significance and investment value of the Taiwanese stock market.
TWSE stated that by providing updates on the latest developments and discussing potential future developments related to the aforementioned critical issues, they aim to timely address concerns of international investors and enhance confidence in Taiwan's capital market.
Additionally, TWSE introduced the Taiwan Carbon Solution Exchange, which commenced operations on August 7. The exchange primarily focuses on domestic and international carbon trading, carbon consultation, and education and training, aiming to establish a fair, efficient, and transparent trading platform to meet the needs of supply chain decarbonization and corporate carbon neutrality. Most of the significant institutional investors on this trip expressed strong support for Taiwan's ESG development and the establishment of the carbon exchange, showing keen interest in future carbon trading opportunities.
Creating a foreign-friendly investment environment is a top priority for TWSE this year. To enhance the investment experience in Taiwan, TWSE visited key foreign institutional investors in Singapore and Japan earlier in the year. Based on the feedback collected from institutional investors in these two countries in the first half of the year, as well as the issues and opinions gathered from the 18 institutions visited during this roadshow, TWSE has actively responded to topics such as foreign exchange controls on Taiwan stocks, single custodian banks, simplification of foreign investor registration, pre-funding, MSCI upgrade, and T+1 settlement cycle.
In addition to visiting 18 institutions, TWSE Chairman Sherman Lin also participated in interviews with several well-known foreign media outlets during this East Coast U.S. trip. He discussed the new highlights of the Taiwan capital market, and this visit provided a platform for TWSE to share the latest capital market measures and policies while conveying Taiwan's eagerness to actively participate in the global financial market and commitment to providing a stable, transparent, and competitive investment environment.
Looking ahead, TWSE plans to head to Europe next year, continuing to engage with key international investors and participants in the global market. The TWSE aims to convey the investment merits of the Taiwan market and gather opinions on its development. Through a series of global roadshows and marketing efforts, TWSE hopes to provide global institutional investors with a better understanding of the advantages and resilience of Taiwan's capital market.
For further inquiries, please contact Ms. Pon at <1220@twse.com.tw>