TWSE Market Insights

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The TWSE held the “Institutional Investor Perspectives Forum” on June 3, 2024, to help listed companies understand new trends in foreign investment, the mindset of institutional investors, and the focus of their attention. Representatives from institutions such as BlackRock, HSBC and ISS-Corporate were invited from abroad to jointly discuss new trends in foreign investment and share their perspectives on investment decision-making by institutional investors. They also discussed issues related to corporate governance, information disclosure and sustainable development. This event attracted over 200 listed companies in Taiwan, with approximately 300 company representatives attending, and received enthusiastic feedback.

At a time when the global economy is recovering and investment trends are changing rapidly, Taiwan, with its strong technological research and development capabilities and stable industrial supply chains, plays an increasingly important role in the global capital market. Belinda Boa, Head of APAC Active Investments and CIO of Emerging Markets at BlackRock, and Stephen James, Managing Director of EMEA & APAC Business at ISS-Corporate, gave two keynote speeches at the forum. The penal was chaired by Rebecca Chen, Senior Executive Vice President of the TWSE, with Herald van der Linde, Head of Equity Strategy Asia Pacific at HSBC, Shinbo Won, Head of Asia Ex-Japan Investment Stewardship at BlackRock, and Dan Cheng, Associate Director & Head of APAC Business Development at ISS-Corporate serving as panelists who shared many noteworthy trends and opportunities, including the opportunities of Taiwan in the global market and the importance of sustainable development, as well as an introduction to the impact of shareholder activism on Taiwan enterprises.

The importance of Taiwan in the Asian capital market and global high-tech industry supply chain is self-evident; its enterprises rank among the top in Asia in terms of information disclosure, ESG (Environmental, Social and Governance) performance and international integration, making Taiwan a shining gem in the eyes of global investors in recent years, attracting a large influx of capital. In the context of Sino-US trade frictions and global supply chain restructuring, Taiwan enterprises must be more flexible and innovative to navigate the constantly changing market environment. Therefore, supporting local enterprises in expanding into international markets, encouraging technological innovation, and enhancing global competitiveness have become the most pressing issues at present.

The integration of corporate sustainability into investment decisions has become a prevailing global trend. In recent years, Taiwan’s regulatory authorities and exchanges have actively promoted strengthening corporate governance, information disclosure, and sustainable development policies. These efforts aim to help listed companies achieve higher standards in corporate governance structure, information transparency, and long-term value creation. Notably, Taiwan has excelled in TCFD (Task Force on Climate-related Financial Disclosures) standards, promoting sustainable investment and assisting enterprises in setting clear ESG goals. This positions Taiwan as a prominent hotspot for global sustainable investment.

Taiwan has significant potential in green energy technology, with the government and enterprises actively promoting a green economy, committed to reducing carbon emissions, and advancing renewable energy development. In the future, Taiwan can further strengthen its position in the global green economy by enhancing cooperation with the international community, and sharing its successful experience in environmental protection technology.

In recent years, the number of PRI (Principles for Responsible Investment) endorsers has been increasing, and investors are striving to become active shareholders. Active shareholders are committed to exercising their voting rights, actively participating, and submitting shareholder proposals. They require invested companies to submit standardized reports, enhance transparency, formally report ESG risks, and provide annual updates on their progress towards these goals. When companies understand the common characteristics of PRI endorsers, which provide guidance for reducing ESG risks, they can better anticipate investors’ the preferences and needs and make better preparations.

The rise of shareholder activism has elevated the standards for corporate governance structure and information disclosure. With the increasing participation of foreign institutional investors in Taiwan’s capital market, enterprises need to focus on building trust and enhancing their appeal through effective information disclosure and good interaction. Enterprises should re-evaluate the way they interact with investors, establish direct communication channels with shareholders, enhance shareholder trust, and effectively address investor concerns. This will improve corporate governance and market transparency of enterprises, thereby meeting shareholders’ evolving needs.

Taiwan’s position in the global capital market is becoming increasingly important. Enterprises should actively enhance information disclosure and corporate governance evaluation to seize opportunities in global markets, thereby standing out in the trend of sustainable development and shareholder activism. In recent years, the TWSE has been dedicated to promoting market transparency and corporate governance, and has successfully facilitated communication and business strategy coordination between listed companies and institutional investors through this forum. At the same time, the TWSE hopes to leverage the power of international institutions to assist Taiwan companies in enhancing shareholder value, showcasing their presence on the global stage, and contributing to the sustainable development of the global economy.

Webpro link: https://webpro.twse.com.tw/WebPortal/vod/115/?categoryId=150