To promote cross-border product collaboration and deepen capital market engagement between Taiwan and Thailand, the Taiwan Stock Exchange (TWSE), together with the Securities Investment Trust & Consulting Association (SITCA), visited key Thai regulatory authorities and exchanges from June 5 to 6, 2025. The delegation also co-hosted the “Taiwan–Thailand Capital Market and ETF Development Forum,” undertaking discussions on ETF and DR issuance, regulatory frameworks, and market practices, while gathering valuable feedback and suggestions from local industry participants.
Deepening Dialogue with a Focus on Regulatory Collaboration
On the morning of June 5, the TWSE and SITCA jointly visited the Securities and Exchange Commission of Thailand (SEC), the Stock Exchange of Thailand (SET), and the Thailand Futures Exchange (TFEX). During the meetings, SITCA Chairman Tsung-Sheng Liu provided an overview of Taiwan’s ETF development, highlighting that the total AUM in the ETF market had reached record highs, establishing ETFs as a key growth driver for Taiwan’s fund industry. Taiwan also boasts the highest ETF penetration rate in Asia.
SET noted that Thai investors show a strong interest in international markets, and DR products have been attracting increasing attention. There are currently DRs linked to the United States, Taiwan, and other Asian markets, and trading volumes continue to grow. Although ETFs have been available in Thailand since 2007, market development has been constrained by limited market maker participation. To diversify its offerings, SET approved active ETFs in 2024 and is set to launch leveraged and inverse ETFs in 2025. SET is also enhancing investor education initiatives through social media campaigns and collaboration with influencers.
Both sides exchanged views on market conditions, ETF product development, regulatory frameworks, and investor education. SET expressed interest in further exploring technical aspects such as ETF creation/redemption processes, market-making systems, and incentive mechanisms.
Trends in Thailand's Asset Management Industry
On the afternoon of June 5, the TWSE and SITCA met with the Association of Investment Management Companies (AIMC) of Thailand. Both sides introduced the current status of their respective asset management industries. AIMC noted that as of the end of 2024, Thailand’s total fund assets reached USD 284 billion, with approximately 15.69 million beneficiary accounts. The market remains largely conservative, with a preference for fixed-income products.
ESG funds have shown rapid growth under strong policy support, with current market share at only 2.51%, but projected to reach 10% within 5 to 10 years. As for ETFs, the market remains underdeveloped; the number of products dropped from 25 in 2016 to just 11 by the end of 2024, with ETF AUM accounting for less than 1% of mutual fund assets. The industry is actively promoting investor education, supported by government-backed tax incentives, as part of ongoing efforts to drive greater market participation.
Expanding Connections to Raise the Visibility of Taiwan’s Capital Market
The forum held on June 6 opened with remarks from TWSE and SITCA representatives, emphasizing the soundness of Taiwan’s capital market structure, steady growth, and the broad potential of its ETF products. They expressed a positive outlook for further collaboration with Thai counterparts to advance cross-border ETF development.
The TWSE delivered a presentation on the Taiwan market, providing an overview of industry and trading developments, as well as the diversity and growth momentum of ETF products. The session continued with a presentation by a representative from the Taiwan Index Plus, who shared insights into index development and licensing services. SET followed with an introduction to the Thai DR market, noting increasing popularity among younger investors. As of the end of 2024, a total of 119 DRs had been issued, with market capitalization exceeding THB 30 billion and average daily turnover reaching THB 550 million.
The forum also featured presentations from three local firms on their issued products. Yuanta Securities (Thailand) introduced its DR linked to the Yuanta Taiwan 50 ETF (0050), which comprises Taiwan’s top 50 large-cap stocks and offers stable performance. LH Fund presented its product linked to CTBC Taiwan Growth High Dividend ETF (00934), which focuses on a dividend-plus-growth strategy. KGI Securities (Thailand) shared its DRs linked to the KGI Taiwan AI 50 ETF (00952) and the KGI Select High Dividend 30 ETF (00915), elaborating on the thematic features of their underlying portfolios.
During the panel discussion, local participants noted that due to the recent underperformance of the Thai stock market, the proportion of retail trading has declined from approximately 50% to 35%. Although the number of investor accounts has continued to grow, actual investment amounts have remained stagnant. Investment behavior is shifting from short-term trading toward long-term holding. Thai investors favor income-oriented and ESG-themed products. While interest in AI-related sectors is rising, ESG remains the mainstream theme, supported by government policy.
Participants advised that any future ETF issuances targeting the Thai market should consider local retail investors' preferred marketing channels, as well as partnering with experienced local firms to enhance product liquidity and market acceptance.
Exploring New Opportunities in Thailand
Led by the TWSE and SITCA, this delegation to Thailand included representatives from six Taiwanese asset management firms. The delegation conducted on-site visits to Thai regulatory authorities, stock exchanges, and related institutions to gain a deeper understanding of the local capital market landscape. Through participation in the forum, the delegation explored the operations and demand for cross-border products such as DRs and ETFs. These efforts will support future product design and marketing strategies and lay a solid foundation for further cooperation in areas such as cross listings, regulatory alignment, and investor education.
The TWSE will continue engaging with Thai counterparts on topics of mutual interest, including ETF subscription/redemption mechanisms, market maker incentives, and product distribution channels. These ongoing exchanges aim to strengthen Taiwan–Thailand capital market collaboration, assist Taiwanese asset management firms in expanding their overseas business opportunities, and support the competent authority's policy goal of positioning Taiwan as an Asian Asset Management Center.