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  1. Stock Investment Guide to Investing in Taiwan MA0N0201 Elise

  2. Market Infrastructure • 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)

  3. Taiwan Stock Exchange (TWSE) • Established in 1961 • The primary equities market in Taiwan.

  4. 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

  5. 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

  6. 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

  7. 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

  8. Taiwan Stock Market Forecast2012-2013 • 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.

  9. Taiwan Stock Market Forecast2012-2013 • 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.

  10. Taiwan Stock Market Forecast2012-2013 • 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.

  11. Taiwan Stock Market Forecast2012-2013 • 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 marketis 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.