It’s turning out to be an exciting year for the Taiwan Stock Exchange (TWSE). According to reports released by the organization, IPO applications have gone up this year thanks in part to the exchange’s effort in promoting the benefits of listing in Taiwan.

 

Since 2008 the exchange has embraced an “open policy” specifically targeting companies in China, Singapore and Vietnam. In 2015 the TWSE had five foreign companies apply to list on the exchange such as Lida Holdings a China-based air compressor manufacturer and Apex International a US-based over-the-counter company bringing the total number of primary-listed foreign companies to 48 as of June 2015.   

 

Based on TWSE information, Taiwan has maintained its market competitiveness in the Asia-Pacific region with its “high P/E ratio, liquidity and high dividend yield,” a TWSE statement highlights.

 

In 2014, the P/E ratio of primary-listed companies was as high as 17.18 and turnover rate as active as 224.62%. In addition, dividend yields were as high as 3.43%, an example of “favorability of primary-listed companies by investors,” according to the TWSE statement.

 

Foreign technology companies in particular have been actively fund raising on the exchange and have constituted between 70%-80% of the total volume by all overseas companies on the TWSE. Activities have ranged from IPOs to the issuance of global depositary receipts.

 

Other recent major breakthroughs of the TWSE includes the allowance of leveraged exchange traded funds (ETFs) which have rapidly grown to become a popular financial tool with investors on the island.