In 2024, global risks and challenges persist with major elections all over the world, possibly resulting in policy changes, and geopolitical influences, further complicating the economic and investment landscape. In this context, the capital market, serving as a showcase and a leading indicator of economic development, plays a crucial role. Its primary objective is to facilitate sustained growth for enterprises, providing essential impetus for industrial and economic development. The market aims to demonstrate Taiwan's resilience through its strength and mobilize collective efforts to boost investor confidence.
Therefore, the TWSE has strategically outlined key priorities for 2024, focusing on expanding market size, innovating products and services, and leading net-zero and sustainability for mutual prosperity. These goals aim to fortify the capital market with robust strength for long-term development. Emphasis is placed on enhancing cybersecurity and ensuring investor confidence to respond to risks for prudent and stable operations. These strategic focuses are anticipated to highlight market competitive advantages and solidify Taiwan's role in the global financial landscape.
Enhancing Corporate Value and Expanding Market Size
The robustness of corporations forms the fundamental to a flourishing capital market. The TWSE is committed to a comprehensive strategy that involves optimizing corporate structure, facilitating industry upgrades, and expanding market exposure to attract both domestic and foreign investment. The goal is to extend impact from individual companies to entire industries, ultimately strengthening the overall scale of the Taiwan capital market.
Primarily, to enhance corporate structure, companies are encouraged to critically assess their Price-to-Book Ratio (P/B) and strengthen corporate governance measures and sustainable information disclosure. Emphasis is on incorporating shareholder and stakeholder perspectives, fostering communication through investor relations, and engagement to boost corporate value and investor confidence.
Moreover, building on the performance of existing key industries like AI and semiconductors, the TWSE, leveraging the strength of both the main board and the Taiwan Innovation Board (TIB), is driving the development of three emerging industries: digital, green energy, and biotechnology.
This initiative aims to attract large and international enterprises to list in Taiwan, creating clusters of new economic industries and upholding Taiwan's competitive edge on the global stage. Simultaneously, in alignment with government industrial policies, collaboration with public sectors and industry entities is encouraged to drive funding for startups, enhance institutional and public interest in startups, inject essential capital for growth, and thereby increase corporate value. The anticipated outcome is to bring quality investment opportunities, facilitate industrial upgrades, and create a positive cycle for companies and investors.
On another front, the TWSE advocates for companies with a market capitalization exceeding NT$10 billion to increase the frequency of institutional investor conferences. Simultaneously, seminars for industry supply chains will be organized, capitalizing on the synergies between larger corporations and small- to medium-sized enterprises (SMEs) to heighten SMEs’ visibility. Additionally, joint capital attraction events with international institutions will showcase high-caliber companies globally. All companies are valued, and diverse strategies are employed to attract more investment to Taiwan, concurrently enhancing market liquidity and fortifying the overall market size.
Driving Innovative Products & Services and Advancing Digital Transformation
Innovation is a key driver for capital market growth. The TWSE is actively introducing new products including actively managed and multi-asset ETFs, cross-border ETFs, REITs with fund structures, and a variety of sustainable products to meet the evolving market needs. Additionally, efforts to enhance the intraday odd-lot trading system aim to broaden the public participation in investments.
To adapt to the trend of digital transformation, the TWSE is taking initiatives on both the B2B and B2C fronts. On the B2B side, a thorough examination of operational processes involving various stakeholders in the capital market, including issuance, trading, settlement, market surveillance, and others will be conducted. Identifying key nodes, the TWSE will leverage financial technology to optimize processes and create a high-performance digital environment. On the B2C side, a customer-centric approach will be taken to provide comprehensive solutions and value-added services based on customer needs.
Strengthening Cybersecurity and Enhancing Investor Confidence
In response to the evolving threats posed by technological advancements, the TWSE will implement intelligent cybersecurity defense mechanisms. Continuous improvements will be made to the physical resilience of critical infrastructure, ensuring uninterrupted market operations. Collaborating with peripheral entities, the TWSE aims to reinforce the effectiveness of cybersecurity measures for securities firms, listed companies, and other market participants, collectively maintaining market security and mitigating potential risks.
Technological advancements also bring opportunities. The TWSE has gradually incorporated technologies such as big data analytics and AI. These technologies will be progressively applied to enhance the efficiency of managing listed companies, brokerage firms, and market surveillance. Additionally, in response to the development of digital learning, the TWSE will utilize innovative communication channels to conduct financial education for investors. This effort aims to elevate public financial literacy, reduce investment and fraud risks, and cultivate a more secure investment environment.
Leading Towards Net-Zero and Accumulating Sustainable Momentum
The TWSE will collaborate with competent authorities and relevant entities to collectively promote market alignment with international sustainability disclosure standards. Simultaneously, we will continually enhance the ESG InfoHub, providing more comprehensive ESG information, and complete the construction of sustainable infrastructure such as the digital platform for sustainability reports.
Furthermore, the TWSE will leverage the synergies within the group to establish a comprehensive carbon trading platform mechanism. We also plan to create an ESG database, develop more ESG products, and guide institutional investors in practicing responsible investment. Additionally, the TWSE will assist companies in strengthening engagement with stakeholders, striving to achieve the long-term goal of moving towards net-zero and sustainable prosperity.
The TWSE is committed to maintaining a prudent approach, employing innovative thinking to address dynamic risks and market challenges while seizing development opportunities to enhance the resilience of the capital market. Faced with heightened global political and economic uncertainties, the TWSE will wholeheartedly align with government policies, assisting industries in progressing steadily. Under the guidance of competent authorities, the TWSE engages in extensive communication with all stakeholders, maintaining ongoing collaboration with peripheral units and associations, and contributing to the continuous growth of the capital market. Our aim is to ensure shared prosperity for the entire population, establishing ourselves as an internationally competitive market and safeguarding the trust of all the various sectors with whom we are in partnership.