TSEC Taiwan Stock Exchange : 35 high-quality listed Taiwanese companies have been included in “Nikkei Asia300 Investable Index”

Japanese media group Nikkei launched a new cross-market index, the Nikkei Asia300 Investable Index, at the end of 2017. The index is comprised of around 300 well-known and representative listed companies from 10 Asian countries, including China, Hong Kong, Taiwan, South Korea, India, Singapore, Malaysia, Thailand, Indonesia and the Philippines. A fund product tracking the index was issued in January 2018. The constituents of the index include 35 quality listed companies from Taiwan, selected from the semiconductor, finance & insurance, computers & peripherals, plastics, telecommunications, optoelectronics and other industries.

The Taiwanese listed companies are featured with good corporate governance and revenue growth. Many are among the major players in the global supply chain favored by international investors. According to information released by Nikkei, Taiwanese constituents constitute up to 13.86% of the Index. And among the top 10 weighted stocks in the Index, TSMC is ranked 3rd (4.35%), only second to Tencent Holdings and Samsung Electronics, while Hon Hai is ranked 9th (1.54%). The related investment products based on the Index will attract more international capital flows into Taiwan's markets.

The Nikkei Asia300 Investable Index is a cross-market index launched by Nikkei on December 11 2017, and is calculated by S&P Dow Jones Indices. The Index is weighted by free-float market capitalization. Stocks with market capitalization within top 150 places in three consecutive years in each country are eligible as the universe for the constituent selection. Those stocks with low trading value, low free-float ratio, or negative net worth in the previous year are excluded. The constituents are selected by market capitalization for each constituent market first, and then followed by 5-year average revenue growth rate as a quantitative indicator to adjust the rankings. The other Nikkei Asia300 Index launched by Nikkei on 1 December 2016, is to measure the performance of Asian markets for international investors, including 40 Taiwanese listed companies.

Considering the growing indexing investment trend in recent years, the Taiwan Stock Exchange (TWSE) also incorporates index development and promotion into the promotion plans of international links and cooperation with other exchanges. The Taiwan Index Plus Corporation, a wholly owned subsidiary of the TWSE, has cooperated with the Korea Exchange to launch the first cross-market index, the ITP Index (IT Premier Index), on 8 September 2017. The Index focuses on renowned IT industries from both Taiwan and South Korea markets, and combines the market characteristics of Taiwan's high yields and South Korea's high capital gains. The ITP Index sufficiently demonstrates the special advantages of industries and stock markets in Taiwan and South Korea, and is highly representative of each market. Both domestic and foreign potential users are planning to apply for index licensing to issue index-related products. The products are expected to be issued in Taiwan and South Korea within this year. It is hoped that the ITP Index related investments will help drive more funds into Taiwan's capital market and increase market momentum. In the future, the TWSE will continue to deepen the connections with other foreign exchanges, and lead Taiwan's stock market towards internationalization through international cooperation.

35 Taiwanese Constituents Included in the Nikkei Asia300 Investable Index

(As of January 5, 2018)

Stock Code	Company Name
2311	ADVANCED SEMICONDUCTOR ENGINEERING
2395	ADVANTECH
2357	ASUSTEK COMPUTER
2474	CATCHER TECHNOLOGY
2882	CATHAY FINANCIAL HOLDING
2105	CHENG SHIN RUBBER IND
2002	CHINA STEEL
2412	CHUNGHWA TELECOM
2891	CTBC FINANCIAL HOLDING
2308	DELTA ELECTRONICS
1402	FAR EASTERN NEW CENTURY
4904	FAR EASTONE TELECOMMUNICATIONS
2892	FIRST FINANCIAL HOLDING
1326	FORMOSA CHEMICALS & FIBRE CORPORATION
6505	FORMOSA PETROCHEMICAL CORP
1301	FORMOSA PLASTICS
2881	FUBON FINANCIAL HOLDING
2317	HON HAI PRECISION INDUSTRY
2207	HOTAI MOTOR
3481	INNOLUX
3008	LARGAN PRECISION
2454	MEDIATEK
2886	MEGA FINANCIAL HOLDING
1303	NAN YA PLASTICS CORPORATION
2408	NANYA TECHNOLOGY
4938	PEGATRON
9904	POU CHEN
2912	PRESIDENT CHAIN STORE CORPORATION
2382	QUANTA COMPUTER
2325	SILICONWARE PRECISION INDUSTRIES CO. LTD.
1101	TAIWAN CEMENT
3045	TAIWAN MOBILE CO. LTD.
2330	TAIWAN SEMICONDUCTOR MANUFACTURING CO.
1216	UNI‐PRESIDENT ENTERPRISES
2303	UNITED MICROELECTRONICS CORP.
Source：Nikkei Asia Index Official Site (https://indexes.nikkei.co.jp/en/asia300/index/profile?idx=asia300i) & Taiwan Stock Exchange