Stock Investment
Guide to Investing in Taiwan
MA0N0201 Elise
Market Infrastructure
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The Taiwan Stock Exchange (TWSE)
Gre-Tai Securities Market (GTSM)
Small to medium-sized enterprises (SMEs)
Taiwan Futures Exchange (TAIFEX)
The Taiwan Depository and Clearing
Corporation (TDCC)
http://www.twse.com.tw/en/about/company/guide.php
Taiwan Stock Exchange (TWSE)
• Established in 1961
• The primary equities market in Taiwan.
http://www.twse.com.tw/en/about/company/guide.php
GreTai Securities Market (GTSM)
• Market for the issuance and exchange of
financial products.
• Central exchange market for the trading of
listed stocks.
• Over-the-counter trading mechanisms for the
GTSM emerging stock market, government and
corporate bonds
http://www.twse.com.tw/en/about/company/guide.php
Taiwan Future Exchange (TAIFEX)
• Established in 1998
• A corporation limited by shares and regulated
by the Financial Supervisory Commission (FSC)
• Offers a total of 21 futures and options
contracts for trading, with underlying
instruments that cover stock indices, single stocks,
long- and short-term interest rates, and
precious metals
http://www.twse.com.tw/en/about/company/guide.php
Taiwan Stock Market Status
• The Taiwan stock market is known as one of the
most active exchanges in the Asia Pacific region
• The total market capitalization of the 758
companies listed on the Taiwan Stock Exchange
(TWSE) amounted to US$784 billion
http://www.twse.com.tw/en/about/company/guide.php
Taiwan Stock Market Status
• The ratio of Taiwan market capitalization to
GDP was 175.04%
• The total trading value in the same year being
at US$894.99 billion
• The market turnover rate is 136.74%
• The Taiwan market P/E ratio is 16.04
http://www.twse.com.tw/en/about/company/guide.php
Taiwan Stock Market Forecast
2012-2013
• HSBC Securities expressed optimism
Wednesday about Taiwan's stock market
outlook, citing strong cash flows, political
stability and new technology products.
• The outlook for Taiwan's downstream
electronics hardware companies, retail
consumer stocks, and financial sector is bullish
over the next six to 12 months, said Jenny Lai,
head of the research department at HSBC
Securities (Taiwan) Co., at a press conference.
http://indonsia-stock-exchange.blogspot.com/2012/03/taiwan-stock-market-forecast-2012-2013.html
Taiwan Stock Market Forecast
2012-2013
• Lai projected that with the political situation in
the country now stable after the recent
elections, the government might expedite the
policy of allowing Chinese investment in Taiwan
that could help boost the stock market.
• In terms of cash flows, Lai was also optimistic
that foreign capital would continue to enter the
market, saying that only one third of the
US$11 billion in foreign investors' net sales at
local stock market in the third quarter of 2011
has returned to Taiwan.
http://indonsia-stock-exchange.blogspot.com/2012/03/taiwan-stock-market-forecast-2012-2013.html
Taiwan Stock Market Forecast
2012-2013
• Noting that the average earnings per share
(EPS) growth rate in Asian stock markets this
year is estimated at 9.9 percent, Lai said
Taiwan's EPS growth rate is projected at 10
percent. However, that excludes the flat panel
and DRAM sectors, she said.
• Citing shares prices of businesses in Apple
Inc. supply chain as an example, Lai said new
technology products will play a major role in
giving momentum to the stock market.
http://indonsia-stock-exchange.blogspot.com/2012/03/taiwan-stock-market-forecast-2012-2013.html
Taiwan Stock Market Forecast
2012-2013
• Apple has been launching new products, which
has resulted in Apple suppliers outperforming
on the stock market since January 2008, she
said.
• Although, Taiwan's stock market is currently in
correctional mode, Lai said she is optimistic
about its performance since the economy is
expected to bottom out in the first half of 2012.
http://indonsia-stock-exchange.blogspot.com/2012/03/taiwan-stock-market-forecast-2012-2013.html