Taiwan and Japan Strengthen Cross-Border Capital Market Ties with Listing of Taiwan-Equities ETF on Tokyo Stock Exchange

Strategic Insights -

Taipei and Tokyo have taken a significant step forward 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 (TSE). This milestone highlights the growing importance of Taiwan's dynamic technology sector and the increasing investor interest in the country's high-growth AI and semiconductor industries. The listing ceremony, attended by TWSE President Edith Lee, marks a major achievement in the strategic partnership between the two markets, enhancing worldwide investor access to Taiwan's thriving technology sector.

Key Takeaways:

  • The TWSE has listed Japan's first ETF investing solely in Taiwan equities, the Daiwa-listed Cathay SITE's 00881 Taiwan Technology Leaders ETF, on the Tokyo Stock Exchange (TSE).
  • This listing marks a significant milestone in cross-border capital market collaboration and enhances worldwide investor access to Taiwan's dynamic technology sector.
  • Taiwan's equity market has benefited from surging global demand for AI and advanced semiconductor technologies, with the benchmark index reaching successive record highs and ETFs experiencing robust growth in investor participation.
  • Japan's equity market has experienced a rally of nearly 80% since 2020, underscoring the strong growth momentum in both markets.
  • Taiwan's ETF market has grown to become the third largest in the Asia-Pacific region since its inception in 2003, with a total of 294 ETFs listed as of August 2025.
  • Over the past decade, Taiwan's ETF market has expanded more than 30-fold, significantly outpacing the 5.4-fold growth of the global ETF market during the same period.
  • Investor participation in Taiwan's ETF market has also broadened substantially, with over 15 million individuals now holding ETF positions, approximately two-thirds of Taiwan's population.

Statistics:

  • $210 billion: The combined assets under management (AUM) of Taiwan's ETF market as of August 2025.
  • 72%: The proportion of Taiwan's total market capitalization accounted for by technology stocks.
  • 294: The number of ETFs listed on the Taiwan Stock Exchange as of August 2025.
  • 30-fold: The growth of Taiwan's ETF market over the past decade, significantly outpacing the 5.4-fold growth of the global ETF market during the same period.
  • 80%: The rally experienced by Japan's equity market since 2020, underscoring the strong growth momentum in both markets.

Sources:

  • PR Newswire, September 12, 2025 - The Taiwan Stock Exchange (TWSE) today announced the listing of Japan's first exchange-traded fund (ETF) investing solely in Taiwan equities on the Tokyo Stock Exchange (TSE).