Chair of the Taiwan Stock Exchange on the index’s near future
This year, Taiwan became the world’s fifth largest stock market by total value in May.
Nick Gordon interviewed Sherman Lin, chair of the Taiwan Stock Exchange Corporation, discussing the unique characteristics of Taiwan's stock market. Lin described Taiwan as an "industrial park" with technology at its core. Currently, Taiwan ranks fifth globally by stock market value, trailing only the U.S., mainland China, Japan, and Hong Kong.
Dominating the Taiwan Stock Exchange (TAIX) is TSMC, the world's largest chipmaker, which accounts for 40% of the index. Consequently, Taiwan's stock market performance is closely tied to TSMC's success, with both entities up 55% and 50% respectively this year. To expand the allure of Taiwan's market beyond TSMC, Lin's team is focusing on other AI supply chain companies and "hidden champions" in various sectors.
The exchange has also implemented a "Power Up" program to enhance corporate governance, mirroring initiatives adopted by Japan and South Korea. However, Taiwan's stock market still falls short of its Asian counterparts in terms of fundraising, raising $3.3 billion in IPOs last year, compared to Hong Kong's $37.4 billion from 119 deals.
Despite a lack of trading hours expansion, Lin remains optimistic, anticipating a three-year window for AI to boost Taiwan's market profile and highlight its comprehensive AI ecosystem, beyond just a few world-class companies.
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