As the global capital landscape is reshaped by the rise of AI, green energy, and the new economy, how can innovative enterprises find their place in the capital market? To continuously enhance the competitiveness of Taiwan’s capital market, the Financial Supervisory Commission, together with the Taiwan Stock Exchange and the Taipei Exchange, has officially launched Asia Innovation Capital, aiming to position Taiwan as the Asia Nasdaq. But what is the true significance of this institutional reform? Katie Chen, co-founder and CEO of Business Next, believes that this is not just an upgrade of the capital market, but a pivotal shift in the “trust mechanism.”
# Regulatory Relaxation, Industry Focus, and Integrated Services – Paving the Way for Innovation with a New Framework
“This reform demonstrates remarkable determination and execution,” said Katie Chen. From the launch of the Taiwan Innovation Board 2.0 at the beginning of the year to the kickoff of Asia Innovation Capital today, Taiwan’s capital market has completed another step in institutional upgrading in less than a year.
She believes this reflects a new determination in Taiwan under the “Asian Asset Management Center” policy, signaling a shift from merely maintaining the status quo to actively embracing innovation. Historically, the capital market was widely perceived as being conservative and risk-averse. However, the current joint reform efforts by the Taiwan Stock Exchange and the Taipei Exchange signal that they truly recognize the potential of the new economy and are ready to embrace greater challenges. From her perspective, Katie Chen observes that this kind of institutional openness also reflects a shift in social culture. It means that when the government is willing to take risks, the market has the opportunity to grow. It is not merely regulatory relaxation, but a change in mindset – moving from simply protecting the market to growing together with innovation.
According to Katie Chen ‘s observations, the core spirit of the Asia Innovation Capital reform is to steer the capital market toward innovation, making it a driver for the development of the new economy. She pointed out that this reform focuses on three main directions, representing not just an institutional upgrade but rather a form of “structural openness”:
- Focusing on key industries: Targeting new economy sectors such as semiconductors, artificial intelligence, green energy, biotech, cybersecurity, and aerospace, concentrating both capital and policy resources. She believes this approach allows resources to be used more effectively and makes policies more pragmatic.
- Regulatory relaxation: This includes adjusting listing requirements for innovative and foreign companies in Taiwan, such as shortening the sponsorship period, simplifying internal control reviews, and allowing non-China/Hong Kong/Macau companies to list under more flexible regulations. She believes this signifies the government’s willingness to take risks, which is essential for market growth. It also represents a shift in mindset from merely protecting the market to growing alongside innovation.
- Integrated services: They set up a Capital Market Service Team and a single point of contact, jointly run by the Taiwan Stock Exchange and Taipei Exchange to provide guidance. She is particularly impressed by this initiative because it helps address startups’ biggest fear – “information asymmetry.” With a single point of contact, companies won’t get lost, and investors can better understand the market. It marks the “beginning of rebuilding trust.”
Katie Chen also emphasized that the biggest breakthrough of this reform lies in its “two-way openness” – shifting from the previous focus on helping startups “go global” to now allowing the “world to come in.” As more international innovative companies choose Taiwan as their fundraising base, it not only drives capital flow but also promotes learning and collaboration.
＃Turning Taiwan into a Hub Connecting Fundraising and Innovation Across Asia
Having long observed the startup ecosystem, Katie Chen reminds entrepreneurs that entering the capital market is not just about raising funds; it is also a test of both brand and trust. “Going public should be the starting point for sustainable growth, not the end. Being validated by the market is another form of protection for a company’s development,” she said.
She reiterated her long-advocated “Brand, Trust, and Capital” three-pillar theory when discussing the future of Taiwan’s startups. She believes that this institutional reform marks the moment when all three elements begin to converge. As regulatory relaxation and board transfer mechanisms gradually mature, capital liquidity can be unlocked; and as information disclosure and corporate governance become more transparent, trust is firmly established. And when companies are willing to be tested in the public market, their brand becomes the most powerful endorsement. Katie Chen said, “When a company can continue to grow in a transparent market, its brand becomes synonymous with trust, and that trust, in turn, attracts more capital – this is the beginning of a positive cycle.” She believes that only through the mutual reinforcement of these three pillars can the value of innovative enterprises be recognized; only then can the entire ecosystem truly form healthy, long-term momentum.
Looking ahead, she hopes that Taiwan will become not just a fundraising market, but also an intermediary of innovation capital in Asia. We have both a strong technology industry and a mature capital market. If we continue to deepen institutional reforms and international connections, Taiwan is fully capable of becoming a litmus test for Asia’s innovative enterprises,” she said. Innovation is not just a slogan; it is the accumulation of a social consensus. Katie Chen emphasized that the success of Asia Innovation Capital hinges on whether we are collectively willing to believe that the value of innovation is worth investing in.