TWSE Press Release

35 high-quality listed Taiwanese companies have been included in “Nikkei Asia300 Investable Index”

Publish Date︰2018/01/30 18:26

Japanese media group Nikkei launched a new cross-market index, the Nikkei Asia300 Investable Index, at the end of 2017. The index is comprised of around 300 well-known and representative listed companies from 10 Asian countries, including China, Hong Kong, Taiwan, South Korea, India, Singapore, Malaysia, Thailand, Indonesia and the Philippines. A fund product tracking the index was issued in January 2018. The constituents of the index include 35 quality listed companies from Taiwan, selected from the semiconductor, finance & insurance, computers & peripherals, plastics, telecommunications, optoelectronics and other industries.

 

The Taiwanese listed companies are featured with good corporate governance and revenue growth. Many are among the major players in the global supply chain favored by international investors. According to information released by Nikkei, Taiwanese constituents constitute up to 13.86% of the Index. And among the top 10 weighted stocks in the Index, TSMC is ranked 3rd (4.35%), only second to Tencent Holdings and Samsung Electronics, while Hon Hai is ranked 9th (1.54%). The related investment products based on the Index will attract more international capital flows into Taiwan’s markets.

 

The Nikkei Asia300 Investable Index is a cross-market index launched by Nikkei on December 11 2017, and is calculated by S&P Dow Jones Indices. The Index is weighted by free-float market capitalization. Stocks with market capitalization within top 150 places in three consecutive years in each country are eligible as the universe for the constituent selection. Those stocks with low trading value, low free-float ratio, or negative net worth in the previous year are excluded. The constituents are selected by market capitalization for each constituent market first, and then followed by 5-year average revenue growth rate as a quantitative indicator to adjust the rankings. The other Nikkei Asia300 Index launched by Nikkei on 1 December 2016, is to measure the performance of Asian markets for international investors, including 40 Taiwanese listed companies.

 

Considering the growing indexing investment trend in recent years, the Taiwan Stock Exchange (TWSE) also incorporates index development and promotion into the promotion plans of international links and cooperation with other exchanges.  The Taiwan Index Plus Corporation, a wholly owned subsidiary of the TWSE, has cooperated with the Korea Exchange to launch the first cross-market index, the ITP Index (IT Premier Index), on 8 September 2017. The Index focuses on renowned IT industries from both Taiwan and South Korea markets, and combines the market characteristics of Taiwan’s high yields and South Korea’s high capital gains. The ITP Index sufficiently demonstrates the special advantages of industries and stock markets in Taiwan and South Korea, and is highly representative of each market. Both domestic and foreign potential users are planning to apply for index licensing to issue index-related products. The products are expected to be issued in Taiwan and South Korea within this year. It is hoped that the ITP Index related investments will help drive more funds into Taiwan’s capital market and increase market momentum. In the future, the TWSE will continue to deepen the connections with other foreign exchanges, and lead Taiwan’s stock market towards internationalization through international cooperation.

35 Taiwanese Constituents Included in the Nikkei Asia300 Investable Index

(As of January 5, 2018)

Stock Code

Company Name

2311

ADVANCED SEMICONDUCTOR ENGINEERING

2395

ADVANTECH

2357

ASUSTEK COMPUTER

2474

CATCHER TECHNOLOGY

2882

CATHAY FINANCIAL HOLDING

2105

CHENG SHIN RUBBER IND

2002

CHINA STEEL

2412

CHUNGHWA TELECOM

2891

CTBC FINANCIAL HOLDING

2308

DELTA ELECTRONICS

1402

FAR EASTERN NEW CENTURY

4904

FAR EASTONE TELECOMMUNICATIONS

2892

FIRST FINANCIAL HOLDING

1326

FORMOSA CHEMICALS & FIBRE CORPORATION

6505

FORMOSA PETROCHEMICAL CORP

1301

FORMOSA PLASTICS

2881

FUBON FINANCIAL HOLDING

2317

HON HAI PRECISION INDUSTRY

2207

HOTAI MOTOR

3481

INNOLUX

3008

LARGAN PRECISION

2454

MEDIATEK

2886

MEGA FINANCIAL HOLDING

1303

NAN YA PLASTICS CORPORATION

2408

NANYA TECHNOLOGY

4938

PEGATRON

9904

POU CHEN

2912

PRESIDENT CHAIN STORE CORPORATION

2382

QUANTA COMPUTER

2325

SILICONWARE PRECISION INDUSTRIES CO. LTD.

1101

TAIWAN CEMENT

3045

TAIWAN MOBILE CO. LTD.

2330

TAIWAN SEMICONDUCTOR MANUFACTURING CO.

1216

UNIPRESIDENT ENTERPRISES

2303

UNITED MICROELECTRONICS CORP.

SourceNikkei Asia Index Official Site (https://indexes.nikkei.co.jp/en/asia300/index/profile?idx=asia300i) & Taiwan Stock Exchange

 

 

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