Taiwan Stock Exchange Embraces Innovative Capital Market Reforms

In recent years, Taiwan and Hong Kong have been actively pursuing regulatory changes to enhance their capital markets and attract more investments. Notably, Hong Kong saw significant progress in its capital markets in 2024, with key developments such as the successful listing of QuantumPharm and the completion of a merger involving HK Acquisition Corporation and Synagistics. These milestones underscore the commitment to maintaining listing quality and public interest.

One of the major initiatives introduced by the Hong Kong Stock Exchange (HKEx) and the Securities and Futures Commission (SFC) was an enhanced timeframe for new listing applications. This initiative streamlines the application process, ensuring timely assessments by regulators and expediting the overall listing process. Additionally, the introduction of measures by the China Securities Regulatory Commission (CSRC) aimed at supporting the listing of mainland companies in Hong Kong further demonstrates a collaborative effort to strengthen Hong Kong’s position as an international financial center.

Moreover, amendments to treasury share rules and adjustments to the minimum initial capitalization for technology companies in Hong Kong reflect a proactive approach to adapt to market needs. The proposed changes in IPO price discovery and open market requirements also aim to optimize the listing mechanism and attract a diverse range of issuers.

On the other hand, Taiwan has made significant strides in creating a fund-friendly ecosystem for startups. The Taiwan Innovation Board (TIB), established in 2021, provides a platform for innovative companies to access capital markets. The TIB’s listing requirements focus on core technologies and innovation capabilities, offering a more accessible pathway for startups compared to traditional listings. The recent regulatory reforms in Taiwan, including the relaxation of trading restrictions and underwriting mechanisms, aim to enhance the liquidity and attractiveness of TIB-listed securities.

Looking ahead, both Taiwan and Hong Kong are poised to continue strengthening their capital markets. Initiatives by regulatory bodies, such as the Taiwan Financial Supervisory Commission and the TWSE, demonstrate a commitment to fostering innovation and attracting a diverse range of companies to the market. By creating a conducive environment for investment and innovation, Taiwan and Hong Kong are positioning themselves as key players in the global capital market landscape, paving the way for sustained economic growth and development.