Financial Market

- TaiwanMa3n0203 Pao-Hsin Hsu1Content Taiwan Financial Market Taiwan stock market Market InfrastructureThe Taiwan Stock Exchange (TWSE)The GreTai Securities Market (GTSM) The Taiwan Futures Exchange (TAIFEX)IPO IN TAIWANThe Characteristic Of TW Stock Market2Taiwan stock market _ part 1known as one of the most active exchanges in the Asia Pacific region with its fully automated trading system and book entry mechanismThe end of 2011the total market capitalization of the 790 companies listed on the Taiwan Stock Exchange (TWSE) amounted to US$634 billionthe ratio of Taiwan market capitalization to GDP was 139.8% the total trading value in the same year being at US$890.94 billionTurnover-rate of 119.87% and the Taiwan market P/E Ratio of 15.76The Taiwan stock market, with its fully automated trading system and book entry mechanism, is known as one of the most active exchanges in the Asia Pacific region. At the end of 2011, the total market capitalization of the 790 companies listed on the Taiwan Stock Exchange (TWSE) amounted to US$634 billion. The ratio of Taiwan market capitalization to GDP was 139.8% in 2011, with the total trading value in the same year being at US$890.94 billion. This represents a market turnover rate of 119.87% and the Taiwan market P/E ratio of 15.76. 4Taiwan stock market _ part 2In the 1990sUnder the supervision of the Financial Supervisory Commission (FSC), the Taiwan securities market initiated its modernization processStarting in 2000With a view to building a more accommodating regulatory environment and carried out a series of legal reformsUnder the supervision of the Financial Supervisory Commission (FSC), the Taiwan securities market initiated its modernization process in the 1990s. With a view to building a more accommodating regulatory environment, starting in 2000, the authorities further carried out a series of legal reforms, such as the Financial Holding Company Act and the Enterprises Acquisition and Merger Law, as well as amendments to the Securities and Exchange Act and the Company Act. In order to enhance the core competitiveness of the Taiwan securities market and to make faster progress towards liberalization and internationalization, the authorities have also promoted the introduction of new financial products, eased restrictions on foreign investment in the domestic market and enhanced the trading system through continuous modernization.5Market InfrastructureThe Taiwan Stock Exchange (TWSE)the primary equities market in Taiwan

The GreTai Securities Market (GTSM) the market for bonds and small to medium-sized enterprises (SMEs)

The Taiwan Futures Exchange (TAIFEX)the principal derivatives market in Taiwan

Market InfrastructureThe Taiwan Stock Exchange (TWSE) is the primary equities market in Taiwan. In addition to the TWSE, there are two other regulated markets, i.e.: the GreTai Securities Market (GTSM), the market for bonds and small to medium-sized enterprises (SMEs); and the Taiwan Futures Exchange (TAIFEX), the principal derivatives market in Taiwan. Every trade is cleared and settled by the relevant market. The Taiwan Depository and Clearing Corporation (TDCC) provides the custodian and book-entry service.

6TWSE Structure

Link: https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1416854573642&chddm=994841&chls=IntervalBasedLine&q=TPE:TAIEX&ntsp=0&ei=iFhzVOmYJMLrkwW0koHQCw

8IPO IN TAIWAN

The Characteristic of Taiwan Stock MarketHigh Turnover-rateFunding focus on Electronics stocksHigh proportion of Retail Investors tradingSerious Insider Trading Limitation on transaction & Human intervention