- First meeting with the management of the American stock exchange in five years
- As U.S. dominates foreign investment, delegation aims to attract more capital to Taiwan
NEW YORK/HONG KONG SAR/SINGAPORE – Media OutReach – August 28, 2023 – The Taiwan Stock Exchange (the “TWSE”) and a delegation from the Taiwan Securities Regulatory Authority will visit the New York Stock Exchange (the “NYSE”), Nasdaq and The Depository Trust & Clearing Company (the “DTCC “) in mid-September. Engage in discussions with US stock exchanges, major US institutional investors and others to highlight the advantages of Taiwan’s stock market, build investor confidence in Taiwan’s capital market, and attract foreign investment to Taiwan.
The visit marks the first high-level meeting between the TWSE and the Nasdaq and NYSE in the past five years. The delegation will be led by Chen-Shan Chang, director general of the Securities and Futures Bureau, an arm of Taiwan’s top financial regulator, the Financial Supervisory Commission, and Sherman Lin, chairman and CEO of TWSE. They will engage in discussions with their US counterparts to seek advice and opinions on topics such as the US move to a T+1 settlement cycle, ESG issues, carbon trading and offset trends. and settlement.
Lin said, “The meeting will be the largest in-person exchange activity between TWSE and Nasdaq and NYSE since 2017, when TWSE visited the United States to attract foreign capital. We greatly appreciate this meeting and look forward to the results.
The United States leads foreign capital in Taiwan with a 40% share
According to the TWSE, foreign investors play an important role in the Taiwanese stock market. By the end of 2022, the United States accounted for more than 40% of foreign capital in Taiwan’s stock market, making it the largest source of foreign investment. In addition, during the September visit, the Taiwanese delegation will individually visit approximately 18 U.S. companies that hold a higher proportion of Taiwanese stocks in their portfolios, including large asset management firms, banks, corporations indices and proxy advisors.
Lin added, “Taiwan attaches great importance to the US market and US investors. We hope to equip US investors with a deeper understanding of the investment potential of the Taiwanese capital market, build stronger ties with institutional investors and thus deepen our relationship. with the principal legal representatives of these institutional investors.
With this visit to the United States, the TWSE intends to provide institutional investors in New York and Boston with key and up-to-date information on the Taiwanese securities market.
Foreign capital drives up Taiwan stock prices
Taiwanese stocks, long sought after by foreign investors, have jumped nearly 60% in the past five years, with average daily trading volume more than doubling since 2017.
So far in 2023, the proportion of foreign capital in Taiwanese stocks has exceeded 40%, which has pushed up Taiwanese stock prices. According to TWSE data, as of July 31, Taiwan’s stock market was up 21.27% on the year, second only to the Japanese stock market with 27.12% among Asian stock markets; and the net overbought position accumulated by foreign investors was around $9.2 billion.
The total revenue of Taiwan-listed companies hit a record high of $1.31 trillion in 2022, with an annual growth rate of more than 5%. Judging by the estimated distributable cash for dividends, the estimated dividend yield is close to 5%, ranking among the best in the world. Of the stocks that make up the Taiwan Stock Index, companies listed in the technology, semiconductor and electronic components sectors have a combined weighting of over 50%.
Lin has launched several new initiatives since taking office in July last year, including the innovative project
ESG Information Hub And
Investment InfoHub – Taiwan’s Markets Dashboard launched in July this year to establish a one-stop information service platform to further strengthen TWSE’s services for international investors.
Besides ESG InfoHub and Investment InfoHub, the TWSE also launched several key new measures in July, including the “Taiwan New Economy Industry Index,” which covers listed companies in four new categories, namely “Digital and Cloud Services,” “Sports and Recreation”, “Green Energy and Environmental Services” and “Household”, as well as the “Taiwan Innovation Board Index” to showcase companies in Taiwan’s new economy. As part of efforts to promote the Innovation Council, Lin has personally visited more than 100 companies with growth potential over the past year.
The Taiwan Carbon Solution Exchange was officially launched on August 7. Lin, who is chairman of TWSE, also serves as chairman of the Taiwan Carbon Solution Exchange.
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