Trading on the Taiwan Stock Exchange TWSE is dominated by Taiwan Semiconductor Manufacturing Co., which accounts for a third of the weighting in the benchmark Taiwan Stock Exchange Weighted Index.
There’s no plan to artificially limit TSMC’s dominance in the index. Rather, the idea is that the massive chipmaker will help attract smaller, newer companies to the exchange, making the index more balanced and diversified, Lin said.
US foreign investors accounted for over 40% of foreign capital in Taiwan’s stock market, making it the exchange’s largest source of foreign investment. TWSE is also exploring the possibility of cross listing exchange-traded funds to track Japanese and Taiwanese securities in each other’s markets, Lin said. The stock exchange operator has already launched similar products with Korea’s stock exchange.