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The first-ever ETF tracking Mainland China’s small-to-medium-size (SME) companies was listed on the Taiwan Stock Exchange (TWSE) today. The ‘Capital SZSE SME Price Index ETF’ (stock code: 00643), issued by Capital Investment Trust Corporation, tracks the SZSE SME Price Index that covers the 100 largest and most liquid companies that trade on the SME Board of the Shenzhen Stock Exchange.
The new ETF allows Taiwan investors to more easily gain exposure to Mainland China’s fast-growing startups and innovative companies. It joins the growing suite of ETF products available on TWSE that track the Mainland China markets, including: four ETFs tracking blue-chip stocks trading on the Shanghai stock market, one ETF tracking blue-chip stocks trading on the Shenzhen stock market and five ETFs tracking Shanghai and Shenzhen-listed companies that are constituents of the CSI300 Index.
Mr. Shin-chung Chen, Senior Vice President of Corporate Planning & Strategy Department at the Taiwan Stock Exchange, said: “Mainland Chinese securities have proven to be a popular investment class for Taiwan investors, but up until now the investment options has been limited mostly to larger blue-chip companies. The new ‘Capital SZSE SME Price Index ETF’ will allow investors to more easily gain exposure to Mainland China’s fast growing SME companies for the first time in a transparent, convenient and low-cost way. We remain committed to further expanding TWSE’s ETF market to help investors diversify their investments.”
The size of Taiwan’s ETF market has grown significantly in the last few years following the introduction of more diversified products, such as leveraged and inverse ETFs, as well as ETFs tracking commodity markets and offshore markets such as Japan and Mainland China. As of November 2015, the total size of the Taiwan ETF market was NT$203.2 billion (US$6.22 billion), with an average daily trading value of NT$8.10 billion. This represents 10.99% of total trading on TWSE.
