Taiwan Stock Exchange (TWSE) chairman and chief executive officer Sherman Lin has led a delegation to the Middle East to engage with key institutional investors and showcase the island’s capital market strengths and growth potential.
From October 11 to 19, the delegation held talks with representatives of stock exchanges, sovereign wealth funds, asset managers, and custodian banks in Qatar, Saudi Arabia, and the United Arab Emirates.
Seeking to foster stronger bilateral investment relations, Lin highlighted the latest developments in Taiwan, particularly the surge in the AI (artificial intelligence) industry this year, which has significantly boosted the market value and trading volume of the island’s capital market.
Taiwan's semiconductor sector, a cornerstone of the global AI supply chain, has positioned Taiwan’s capital market as a focal point for international investors.
The TWSE team visited several Middle Eastern stock exchanges to share Taiwan's successful experiences in supporting fundraising activities for new economy industries in the capital market, particularly in the areas of exchange-traded funds (ETFs) and environmental, social and governance (ESG) performance.
With the recent unveiling of the "Asian Asset Management Center" project by the Taiwan government, the TWSE plans to actively introduce more active and multi-asset ETF products and cross-border dual listing schemes. This visit also aimed to strengthen cooperation and explore the joint development of new ETF products and other financial activities.
Market cap doubles
Speaking on a panel at the J.P. Morgan Middle East Forum in Riyadh, Lin underscored Taiwan's competitive edge. "Since 2020, Taiwan's market capitalization has doubled, reaching US$2.2 trillion. Taiwan's aggressive investments, driven by AI innovation and the strong development of the local ETF market, have contributed substantially to the market capitalization increase," he said.
"With the AI-driven development of Taiwan's ICT industry and the future launch of active and multi-asset ETFs under the government's Asian Asset Management Centre project, Taiwan capital market is poised to attract more international investors."
Taiwan Stock Exchange chairman and CEO Sherman Lin (Second from right) exchange views with other panellists at the J.P. Morgan Middle East Forum in Riyadh. (TWSE)
Lin also noted that sustained foreign interest has been a key driver behind Taiwan's upward trend in stock prices and volumes, with international investors maintaining ownership above 40% for ten consecutive months since November 2023, and trading volumes consistently exceeding 30%.
The Taiwan stock market has surged this year, rising by 23.94% as of September 30, outpacing major global stock markets. Listed companies have reported significant year-on-year increases in revenue and profits in the first half of 2024, highlighting robust growth among local enterprises.
"Since 2023, the TWSE has been on a mission to connect Taiwan's vibrant capital market with the world's leading financial hubs, including Singapore, Japan, Europe, and the United States. Now, turning our focus to the Middle East, we are keen to attract capital within the region, particularly petrodollars, to invest in Taiwan. Our visit was not just about investment; it was about building lasting relationships, creating cross-border cooperation opportunities, and enhancing our international connectivity," Lin said.
