Taiwan Stock Market: Sherman Lin, Taiwan Stock Exchange chairman, says international investors are still investing in Taiwan’s stock market despite escalating political tension with China. This is what Lin stated.
Record figures showed foreign investors buying more Taiwanese stocks than ever at the end of June. The company had grown because foreign investors owned more shares. Last half-year, foreign net sales hit $12 billion, a peak not seen since 2008. Since 2008, no one has mentioned this achievement.
No news stories have covered this success since 2008. Taiwan’s benchmark index, symbol. TWII, rose 16% in US dollars this year, making it one of Asia’s best-performing indices and putting it in a prominent position. This index led Asia’s best-performing stocks last year.
Recent years have seen a shift in concentration. This update was recent. Net sales rose to T$83.9 billion ($2.62 billion) in July and T$106.6 billion in August when gross sales shifted to net sales. This changed when net sales replaced gross sales. This shift occurred after the last two months’ gross sales were released.
Chairman Lin explained in a lengthy chat that the adjustment is a natural market plateau following a gain and not an exodus of foreign capital. He stressed that this shouldn’t be forgotten. He stated that this should never happen. This is why he indicated the plateau followed the increase. “Even though foreign holdings have gone down recently, they still own about 40% of Taiwan’s shares, which has been the case for a long time.” Taiwan’s shares have long been owned by international investors.
He claimed a few conversations he’d had with foreigners, especially from Japan and Singapore, showed a little worry about hostilities escalating. He replied to a query. These countries are geographically close to Taiwan and China, thus any confrontation between them would directly affect them. Since the war would strike these countries heavily.
Read More: Chinese EV Makers Target European Market Amid Challenges and Competition
Chinese military activity near Taiwan’s borders in August last year and April this year demonstrate its hostility toward Taiwan. Taiwan’s borders were near these moves. These drills were near Taiwan. Lin wondered in his study paper, “Why does foreign investment in Taiwan not change, even though Chinese military strength is often shown nearby?” Why does Taiwan continue to attract international investment when China displays its military force nearby?
His response proved that investors are interested in Taiwan, which appears strong enough to withstand China’s activities. His comment proved that Taiwan can attract investors despite China. His statements showed that Taiwan may remain appealing despite China. He explained Taiwan’s world-class supply network, largely controlled by TSMC (2330.TW), the world’s largest chipmaker. He added that Taiwan’s supply chain is excellent.
Taiwan’s supply chain is always high-quality. Without this technique, the AI business won’t expand as much. Key firms in this chain, including Foxconn (2317.TW) and Quanta Computer (2382.TW), can negotiate geopolitical solutions with agility and resilience.
Lin will travel to New York City and Boston next month with the island’s top security official. Going gonna happen. They want to connect with sixteen key financial institutions, including stock exchanges, pension vaults, and money-handling corporations. Because they want more foreign money in Taiwan’s stock exchanges. Taiwan’s safety depends on its connectivity to the global monetary system, according to Lin.
Our Reader’s Queries
What is Taiwan stock market called?
Established in 1961 and commencing trading on February 9, 1962, the Taiwan Stock Exchange (TWSE) has been the leading stock exchange in Taiwan. Headquartered in Taipei, it has played a pivotal role in the country’s financial landscape.
Can I invest in Taiwan stock market?
Foreign investors looking to open a trading account with a local securities firm in Taiwan must first register with the TWSE to obtain an “Investor ID.” Fortunately, the registration process and related documentation have been simplified by the TWSE, making it easier for investors to get started.
What is the main stock index in Taiwan?
The Taiwan Indices have been showing promising numbers lately. TPEx 231.05 and TPEx 502.14 have both seen highs in the 230s and 250s respectively. TSEC Taiwan 50 has also been performing well, with a current value of 12,974.48. The Taiwan Weighted index has also been on the rise, currently sitting at 17,519.14. These numbers indicate a positive trend in the Taiwanese market.
Is Taiwan a good country to invest in?
Taiwan ranks among the top 20 economies globally, with a strong gross domestic product (GDP). It also holds the position of being the United States’ ninth largest trading partner, as per the latest statistics of 2022.