Taiwan Stock Exchange
|Taiwan Stock Exchange|
|Key People||President Samuel J.S. Hsu, Chairman Chi Schive|
|Products||Cash equities, warrants, bonds and ETFs|
The five-decades old Taiwan Stock Exchange (TWSE), the island nation's largest exchange, became a fully-automated electronic trading platform in the early 1990s. TSE recently merged with three smaller local exchanges in advance of an expected IPO after earlier seeking to sell a stake in itself to major global exchanges including Nasdaq and the CME Group.
TWSE was launched in 1961 and began the move from a full open outcry trading floor in 1985, completely converting to a fully automated securities trading (FAST) system in 1993. Talks in 2009 with the New York Stock Exchange, Deutsche Börse, CME Group and the Nasdaq Stock Market about purchasing a minority stake in TSE were unsuccessful. The other main competitor to TSE for securities trading in Taiwan is the GreTai Securities Market, which mainly serves the OTC and small-cap or faster-growing stock.
In 2009, the Taiwan Stock Exchange benefited greatly from increased investment by mainland Chinese in Taiwan's markets. The TWSE is also co-opeating with Japanese brokerage firm Nomura Securities to persuade a number of Japanese corporations to launch initial public offerings, and other to launch secondary listings through Taiwan depository receipts.
The TWSE's stock benchmark is the TAIEX index, which was launched in 1966 with a base-level of 100 and covers all listed shares on the exchange, weighted by market capitalization. The TAIEX has 33 industrial sub-indices covering sectors ranging from paper and pulp to semiconductor; the sub-indices were launched as a group of eight in 1986.
Recently the TWSE's parent company, the Taiwan Stock Exchange Corporation (TSEC), formed a joint venture with global index provider FTSE to launch a second index series called TSEC Taiwan Index series. The TSEC Taiwan 50 Index is the main benchmark, representing the TWSE's top 50 companies that comprise 70 percent of the total market value, while the TSEC Taiwan Mid-Cap 100 Index ranks the next 100 companies. The TSEC Taiwan series has five other smaller indices including the TSEC Taiwan Shariah Index that focuses on listed companies with that comply with Islamic finance guidelines.
TWSE Chairman Chi Schive was appointed to the position in August 2008 with the aim of developing the exchange into an Asia-Pacific investment hub. Upon his appointment, Schive pledged to develop new financial products and encourage Taiwanese corporations that had listed on overseas exchanges to return to the TWSE. Schive was previously vice chairman of Taiwan's Council for Economic Planning and Development (CEPD) and president of the Taiwan Academy of Banking and Finance.
The TWSE may begin listing the shares of mainland Chinese companies by 2010 following the completion of an Economic Co-Operation Framework Agreement between Taiwan and China in November 2009. The agreement will be a major boost for both countries' finance and investment sectors, offering Chinese companies access to the $612 billion TWSE. Taiwanese investment bankers say the move will give the TWSE's investors more choice with less need to use exchanges abroad.
- ↑ Taiwan Stock Exchange Corporation. Answers.com.
- ↑ Stock Exchanges Are in Talks to Buy Stake in Taiwan Board. Bloomberg.
- ↑ Taiwan Talks With Shanghai Bourse 'Easier' With Pact. Bloomberg.
- ↑ TWSE to Attract Japanese Firms to List in Taiwan. CENS.
- ↑ TWSE TAIEX Series Compiled by TWSE. Taiwan Stock Exchange.
- ↑ TSEC Taiwan Index Series. FTSE.
- ↑ Appointment of Mr. Chi Schive as the New Chairman of Taiwan Stock Exchange. Business Wire.
- ↑ China Firms May List in Taiwan From 2010, Schive Says. Bloomberg.