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With the aim of further expanding the scale of the Taiwan capital market and strengthening its international profile, Taiwan Stock Exchange (TWSE)’s Senior Executive Vice President Mr. Lih-chung Chien will lead a delegation alongside the Taipei City government to Japan in early September. The delegation will aim to encourage more Japanese companies to list in Taiwan. TWSE has been proactively targeting the Japanese market since 2008, organizing more than five overseas trips, resulting in a number of Japanese companies planning a Taiwan listing. There are currently three Japanese companies who are applying for a listing on TWSE.
Over many years, Taiwan’s well-developed high-tech industry has formed close working relationships with Japanese technology manufacturers. Sectors such as the semiconductor industry located at the Hsinchu Science and Industrial Park, photovoltaic industry based at the Central Taiwan Science Park and the biotechnology industry based at the Southern Taiwan Science Park have formed strong industry clusters that have established extensive technical collaborations with Japanese counterparts in the upstream or downstream portion of the supply chain. As a result of this, TWSE has been actively promoting listings to Japanese companies with close connections to Taiwan's industrial enterprises. Through a successful listing in Taiwan, Japanese companies can further expand their businesses, as well as strengthen their relations and thrive with their Taiwan counterparts. This could further encourage cooperation between Japanese and Taiwanese companies to enter markets in Mainland China and Southeast Asia.
In order to align Taiwan and Japanese regulatory requirements and protect shareholder rights, TWSE has abolished listing requirements requiring a par value of NT$10 per share, enhancing the attractiveness of Taiwan listings to Japanese companies. Having compared legal requirements in Taiwan and Japan, TWSE will also facilitate Japanese enterprises with registered operations in Japan to directly list in Taiwan. In light of the recent economic recovery in Japan, TWSE expects demand for overseas listings and funding will increase enormously. TWSE will enable Japanese firms that opt to list in Taiwan to further diversify their investments overseas, creating a win-win opportunity.
In addition to promoting listings, TWSE will also assign representatives to visit a number of large Japanese institutional investors to introduce recent reforms carried out within TWSE and the Taiwan capital market in the context of current political and economic developments. TWSE also intends to enhance Japanese investors’ understanding of the Taiwan capital market and increase their interest in investing in Taiwanese stocks.
