A. Features of Taiwan's Capital Market
(1) Geographic Advantage: Taiwan is located at the center of an archipelago in the western Pacific Ocean, which is close to Northeast Asia, mainland China, and Southeast Asia, with convenient access to transportation. After mainland China and Taiwan have entered into the ECFA, economic and trade exchanges have become more vigorously, which places Taiwan in the center of regional transportation and economic routes.
(2) Industry Clusters: With a comprehensive industrial supply chain, a sizeable research-and-development talent pool and outstanding innovation, many companies in Taiwan have developed into world leaders.
(3) Diverse Industry Sectors: The listed companies in Taiwan comprise of 29 industry categories which are considered copious and diversified. Except nine industries relating to technology, e.g., semi-conductor, photonics and optoelectronics, and biotechnology and medicine, the other twenty non-technology industries include banking, construction, shipping, etc.
(4) Market Performance: Taiwan's capital market has outstanding performance in indices such as P/E ratio, turnover ratio, and yield rate. Furthermore, it provides a simpler way to finance through SPO.
B. Advantages for Issuers
(1) Collaboration with Local Industry
Taiwan possesses a wide range of businesses, a comprehensive industrial supply chain, a solid technical basis and a supply chain closely tied to the global production and marketing system. To list in Taiwan, foreign issuers could:
enhance its popularity and competiveness
integrate with local enterprises to jointly develop the market in mainland China and the Asia-Pacific region
establish a local presence and build high level skills regarding R&D, technology and management.
(2) Successful Financing
The excellent P/E ratio and reasonable cost of financing make Taiwan's capital market an ideal financial environment to finance.
(3) Flexibility in Financial Planning
SPOs are widely recognized by the local market. Foreign issuers may raise additional capital by utilizing different methods, such as cash capital increase, issuance of corporate bonds and private placement.
C. Advantages for Investors
(1) Investors would have more investment options and would be able to share the profits of the overseas enterprises in good standing.
(2) Ways to transact the listed shares is simple, which would be largely consistent with the dealings of local shares. In other words, no additional costs will be incurred.