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Taiwan and Japan Strengthen Cross-Border Capital Market Ties with First Taiwan Equity ETF Listing in Japan

Strategic Insights

— 1 min read

The Taipei-based Taiwan Stock Exchange has marked a significant milestone in cross-border capital market collaboration with the listing of Japan's first exchange-traded fund (ETF) investing solely in Taiwan equities on the Tokyo Stock Exchange. This move enhances worldwide investor access to Taiwan's dynamic technology sector, particularly in the areas of artificial intelligence and semiconductors. The listing of the ETF, which is issued by Daiwa Asset Management, tracks the Cathay SITE's 00881 Taiwan Technology Leaders ETF and represents the first Japan-listed ETF directly tied to the Taiwan stock market.

Key Takeaways:

  • The listing of the Japan-listed ETF marks a significant milestone in cross-border capital market collaboration and enhances worldwide investor access to Taiwan's dynamic technology sector.
  • Technology stocks currently account for approximately 72% of Taiwan's total market capitalization.
  • Taiwan's equity market has benefited significantly from the surging global demand for AI and advanced semiconductor technologies, with the benchmark index reaching successive record highs.
  • ETFs have experienced robust growth in investor participation, with over 15 million individuals now holding ETF positions, equivalent to nearly two-thirds of Taiwan's population.
  • The TWSE has grown over the past decade, with the ETF market expanding more than 30-fold and assets under management increasing by over 30 times.
  • The Daiwa listing is a key milestone in Taiwan-Japan cross-border ETF cooperation, signaling deeper market integration and enhancing international visibility for Taiwan's high-tech industries.
  • The TWSE is committed to broadening product diversity and pursuing international partnerships, in line with Taiwan's vision to become a leading asset management hub in Asia.

Statistics:

  • Taiwan's equity market has grown significantly, with the benchmark index reaching successive record highs.
  • Technology stocks account for approximately 72% of Taiwan's total market capitalization.
  • Over $210 billion (NTD 6.77 trillion) in assets were under management in Taiwan's ETF market as of the end of August 2025.
  • Taiwan's ETF market has expanded more than 30-fold over the past decade.
  • The TWSE was founded in 1962 and has grown to become the third largest ETF market in the Asia-Pacific region.
  • Japan's equity market has rallied nearly 80% since 2020, including a gain of over 10% year-to-date.

Sources:

  • "Taiwan Equities ETF Listed in Japan" by Taiwan Stock Exchange (no date mentioned)
  • "Taiwan Stock Exchange" (no date mentioned)

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