TWSE Market Insights

＜中文版＞

Reconnecting after nearly two decades, the 2025 General Assembly of the Asian and Oceanian Stock Exchanges Federation (AOSEF) successfully concluded in Taipei on March 25. Hosted by the Taiwan Stock Exchange (TWSE), the event brought together 62 representatives from 17 member stock exchanges across Asia, with delegations from 12 exchanges attending in person to explore the future of regional capital market development through productive exchange and collaboration.

Yen-Liang Chen, Vice Chairperson of Taiwan’s Financial Supervisory Commission, emphasized the importance of regional cooperation in the Asia-Pacific to attract global capital amidst the rapid evolution of digital finance, sustainability, and cross-border capital flows. He highlighted Taiwan’s steady capital market growth over the past decade and its resilience amid global supply chain restructuring. Chen also outlined Taiwan’s commitment to the Asian Asset Management Center initiative, aiming to position Taiwan as a key hub for capital and wealth management in Asia through a six-year, three-stage plan: observe progress in two years, transform in four, and achieve in six.

Sherman Lin, Chairman and CEO of the TWSE, welcomed delegates in his opening remarks, highlighting AOSEF's long-standing commitment to regional cooperation. Despite global market challenges, Asian markets continue to drive growth and innovation. Chairman Lin emphasized Taiwan's strong capital market performance, fueled by the AI boom and rapid ETF development, achieving record highs in market capitalization and trading volume.

To enrich the meeting and deepen delegates' understanding of Taiwan's market development, the event featured insightful keynote speeches from Chris Hung, Director General of the Market Intelligence & Consulting Institute at the Institute for Information Industry, and Tsung Sheng Liu, Chairman of the Securities Investment Trust & Consulting Association. Their keynote speeches, centered on AI and ETFs, highlighting Taiwan's competitive strengths and growth opportunities in the global AI value chain and the rapidly expanding ETF market.

Chris Hung shared insights into the accelerating growth of generative AI and its impact on AI servers, edge AI, cloud AI, and terminal AI. Taiwan, a global leader in semiconductor technology, continues to push the boundaries of advanced node manufacturing and heterogeneous integration, positioning itself as an ideal partner for international enterprises. Additionally, Taiwan’s AI software sector is also growing rapidly, with numerous startups and IT service providers shaping a thriving AI ecosystem.

Tsung Sheng Liu highlighted the rapid expansion of the Asia-Pacific ETF market, the fastest-growing globally. Innovative products and diverse investment strategies are enhancing market liquidity and investor opportunities. Taiwan’s ETF market has reached record highs since its first ETF listing in 2003, with over 14.1 million beneficiaries. High-dividend ETFs, offering an average 70% payout ratio and a 4% yield, are attracting long-term investors. Taiwan's bond ETF market remains the strongest in Asia, maintaining a stable asset management scale of USD 40 billion. With the introduction of odd lot trading, two million young investors are contributing USD 420 million in regular investments. Taiwan’s robust ETF ecosystem is set to enter the ETF 2.0 era, with aspirations to become Asian Asset Management Center through continued international collaboration.

During the General Assembly, amendments to the charter were approved, explicitly defining the effectiveness of online attendance, the tenure of the Working Committee Chairs, as well as the principles for future rotation of the General Assembly host. Following the approval of the charter amendments, the meeting continued with updates and experience sharing from member exchanges. The representatives discussed IPO growth, sustainable finance, digital transformation, and market infrastructure enhancement. The Hong Kong Exchanges and Clearing Limited reported 71 IPOs raising HKD 88 billion in 2024, with an average daily equity trading volume of HKD 620 billion. The exchange continues expanding southbound trading. The Tokyo Stock Exchange recorded 130 IPOs, the second-highest in a decade, extended trading hours by 30 minutes, and launched tax exemptions for small investments, leading to significant retail investor growth. The Korea Exchange saw 139 IPOs raising USD 3 billion and is implementing a short-selling monitoring system to restore investor confidence.

The Taiwan Stock Exchange highlighted its capital market growth, benefiting from AI advancements and advanced semiconductor manufacturing, with a five-year revenue increase of over 27% and a record market capitalization of USD 2.25 trillion by the end of 2024. TWSE’s financial inclusion initiatives have driven a 20-fold ETF market growth over a decade, with stock ETF assets surpassing USD 103 billion. The innovation board now supports startups with a market capitalization of USD 5 billion, while sustainability efforts, including a carbon credit trading platform and green talent cultivation, have led nearly 70% of listed companies to publish sustainability reports.

Amid growing global emphasis on corporate governance and sustainable development, exchanges from Hong Kong, Tokyo, Korea, Mongolia, and Taiwan also shared strategies to enhance corporate value. The Hong Kong Exchanges and Clearing Limited emphasized board effectiveness, gender diversity, and shareholder engagement. The Tokyo Stock Exchange promoted capital efficiency-driven management, urging companies to set clear financial targets and engage with investors. The Korea Exchange leveraged financial indicators, incentive programs, and specialized indices to encourage value-enhancing plans. The Mongolian Stock Exchange accelerated market expansion through state-owned enterprise listings, green bond issuance, and foreign investment-friendly policies. The Taiwan Stock Exchange advanced corporate governance, industry development, and investor relations, achieving a record market capitalization of USD 2.2 trillion and an annual trading volume of nearly USD 3 trillion by the end of 2024. Starting in 2025, all listed companies will be required to disclose sustainability reports, helping to enhance market transparency. Through policy innovation and structural enhancements, regional exchanges are accelerating value creation for listed companies and boosting investor confidence.

Beyond the discussions, the AOSEF General Assembly also featured a gala dinner with innovative booth activities and local Taiwanese art performances, offering delegates an opportunity to experience Taiwan's rich cultural heritage and unique charm. The event allowed the TWSE to connect with delegates from various exchanges, laying a solid foundation for future partnerships.

The 39th AOSEF General Assembly successfully concluded, following the Chairman's efforts during the 38th AOSEF General Assembly last year, which ensured the TWSE's right to host this annual event. This paved the way for in-depth exchanges and experience sharing among delegates from various exchanges, further enhancing the influence of the Asian market in the global capital markets. Hosting the AOSEF General Assembly not only raised Taiwan’s visibility on the international stage but also strengthened collaboration between the TWSE and global exchanges, marking tangible progress toward becoming the Asian Asset Management Center. Looking ahead, the TWSE will continue fostering exchange collaboration, driving innovation in Asian capital markets, and working together to achieve sustainable growth in the future.