TWSE Market Insights

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2024 is coming to an end, and the global situation is still under the impact of negative factors such as regional conflicts between Russia and Ukraine and in the Middle East, as well as trade protectionism. Advanced economies are observed to have a downward trend in inflation, and multiple central banks such as the Federal Reserve and the European Central Bank have successively lowered policy interest rates. Despite the many uncertainties in global politics and economy in 2024, it is undoubtedly a year full of hope and opportunities for participants in Taiwan’s capital market. Taiwanese industries have fully demonstrated their strength that is reflected in the outstanding performance of Taiwan’s listed companies and the resilience of Taiwanese stocks.

Looking back at 2024, the TAIEX increased by 28.47%, ranking second only to Nasdaq's 28.64% among major global stock markets. The index reached its highest point on July 11, closing at 24,390.03 points, with a market capitalization of NT$77.72 trillion. The total trading value for the year was NT$99.81 trillion, with an average daily trading value of NT$412.45 billion, both setting new historical records. In terms of corporate fundraising, the number of IPO listings reached 36, marking the highest number in the past decade, demonstrating the active momentum of Taiwan's capital market in IPOs. All of these achievements cannot be achieved without the joint efforts of every capital market participant. Today, we can proudly say that Taiwan’s capital market is moving towards a more brilliant future. Looking ahead, the Taiwan Stock Exchange aims to become one of the top 10 exchanges in the world. It is committed to working together with all market stakeholders to drive Taiwan's capital market toward the next peak.

Looking back at the development of Taiwan’s securities market, it started with traditional industries and gradually transitioned to the technology industry, and this process is full of challenges and opportunities. In the 1980s, the establishment of the Hsinchu Science Park injected the first burst of energy into our technology industry, and Taiwan’s capital market began to show unprecedented potential. In 1995, in order to enable more innovative technology companies to enter the capital market, we established listing conditions specifically designed for the technology industry, allowing such companies to seize the opportunity and grow into today’s global leaders.

For example, ASMedia Technology (listed in 2012), Global Unichip (listed in 2006), and MediaTek (listed in 2001), the three highly anticipated companies, had small market values when they first went public. However, with their fearless spirit of innovation, their market values have now reached NT$148.6 billion, NT$186.3 billion, and NT$2.27 trillion, respectively, a growth of 41 times, 44 times, and 36 times since they went public. Among them, MediaTek’s foreign shareholding ratio has reached 50%, becoming an indicator of the global electronics industry, and this is the most vivid portrayal of the innovation policy of Taiwan’s capital market. From this history, we may deeply understand that a successful system will make a profound impact on the market, and will ultimately bring significant value after the refinement and fermentation of time.

However, the road ahead is even broader but more challenging. We are facing a completely new technological revolution today, and technologies including artificial intelligence, 5G, the Internet of Things, and cloud computing are reshaping the global industrial landscape at an unprecedented speed. Observing the top five companies in market value in the United States today, companies such as Apple, Microsoft, and NVIDIA with their market value exceeding USD 3 trillion are all successful examples driven by innovative technology or artificial intelligence. The Taiwanese government is also actively promoting “Five Trusted Industries,” which include semiconductor, artificial intelligence, military industry, security control, and next-generation communication as the key industries for future global layout through the dual core of semiconductor and AI industries. The facts that Japan has proposed the “Four Pillars of New Capitalism” which centers on talent, technological innovation, startups, and digital green energy, and that the Malaysian government announced the New Industrial Master Plan 2030 are vivid examples that several countries are already promoting the development of manufacturing towards high added value and high technology, and are also following future industrial trends. Since Taiwan has a strong manufacturing foundation and abundant innovation potential, we must certainly seize this historic opportunity, and make innovation the core driving force for our future development.

The Taiwan Innovation Board focuses on market capitalization. This upgrade not only abolishes the qualified investor system but also adopts the General Board trading system. The most notable feature is the reshaping of the brand value of innovation, allowing companies listed on the Taiwan Innovation Board to gain added value through recognition from various sectors. For innovative enterprises or investors, Taiwan Innovation Board 2.0 is not only an innovation in the capital market, but also a transformation of the industrial chain. We hope to attract innovative enterprises with high growth potential in a more precise manner, so that they can thrive on this fertile land of Taiwan, shine on the stage of the Taiwan Innovation Board, create their own future, and drive the overall economic upgrading and transformation of Taiwan. In addition, we hope to expand the base of investors, so both institutional and individual investors can enjoy investment opportunities to participate in the growth and prosperity of innovative enterprises.

We want the world to see that Taiwan is not only a global manufacturing hub, but also a technology island with an unlimited innovation capacity. The future Taiwan Innovation Board will not only become the ideal listing platform for domestic new-economy industries, but also attract the attention of other international companies as their best choice for development in Asia. The Taiwan Innovation Board is not only a stage for the capital market but also a innovative hub for limitless possibilities, allowing every company eager to break through to find the momentum for growth here.

In the future, the Taiwan Stock Exchange will move forward with two main focuses: "technology" and "innovation." We are confident that the Taiwan Innovation Board will become the first choice for innovative companies in Asia and a powerful driving force for industry transformation and economic upgrading. This journey is filled with challenges, but innovation has never shied away from difficulty. The Taiwan Stock Exchange will continue to pursue breakthroughs, aiming to build Taiwan into a capital market with both strong soft and hard power, as well as international competitiveness!