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Taiwan’s booming ETF market was a key point of discussion at the ‘The Asset 2nd ETF Asia Summit 2016’ held in Taipei today, co-hosted by the Taiwan Stock Exchange Corporation (TWSE) and Taiwan Index Plus Corporation (TIP).
Since Taiwan’s Financial Supervisory Commission (FSC) adjusted regulations to allow the listing of more diverse exchange-traded products in 2014, Taiwan’s ETF market has grown rapidly and now accounts for 9.94% of total turnover on the TWSE, compared to only 1.88% in 2014.
As of the end of May 2016, more than US$7,640 million was invested in the 46 ETFs listed on the TWSE, including 18 leveraged and inverse ETFs, as well as ETFs tracking foreign markets such as the United States, Mainland China, Hong Kong, Japan and India.
The number of ETFs listed on the TWSE will grow to 49 by the end of June 2016, following the listing of the Yuanta EURO STOXX 50 ETF and the Yuanta Nikkei 225 ETF today (15 June) and the expected listing of the Fubon Nasdaq-100 ETF on 17 June.
On the sidelines of the Summit, TWSE Chairman, Mr. Sush-der Lee, said: “In just a few short years, Taiwan has emerged as a truly global ETF market. Investors are able to trade many of the world’s major indexing products – a prospect that is attractive to both professional and occasional investors. The growing availability of more complex products, such as inverse and leveraged ETFs are also providing more investment alternatives for experienced investors.”
‘The Asset 2nd ETF Asia Summit 2016’ brought together more than 200 participants from the buy-side and sell-side, senior representatives from other exchanges – including the Tokyo Stock Exchange, the Korea Exchange and the NASDAQ OMX Group – as well as speakers from ETF issuers such as Yuanta Funds and Cathay Securities Investment Trust Companies.
Mr. Lee concluded: “We welcome the opportunity to further our cooperation with overseas stock exchanges in order to introduce more ETFs that track overseas markets and to expand our international linkages.”
