Taiwan is looking to boost investor access to exchange traded funds by enhancing technology and deepening collaboration with the stock exchanges in Asia as part of its bid to become the region’s innovation hub for ETF products.

 

Speaking at The Asset’s 2nd ETF Asia Summit in Taipei, Sush-Der Lee, chairman of the Taiwan Stock Exchange says development of the ETF in Taiwan has been a “step by step process.”

 

“We cooperate with other exchanges such as Korea Exchange to encourage the development of the ETF market in Asia. We need to utilize technology to make ETF accessible to all investors,” he adds. In particular, the exchange plans to drive investment in platforms that will allow increased access to ETFs.

 

Lee noted the rapid growth of the ETF market. As of May 2016, there were 46 ETFs listed on the Taiwan Stock Exchange. Quite an impressive feat considering that five years ago there were only 18 ETFs listed on the exchange

 

Dr Tien-Mu Huang, vice chairperson at Taiwan’s Financial Supervisory Commission told delegates at the ETF summit that much needs to be done to bolster ETF development in the city-state.

 

Huang said that one of the priorities of the FSC is to increase institutional investors’ participation in the ETF market.

 

“Retail investors have become a growing participant in Taiwan’s ETF market,” observers Huang. “We want to widen the ETF product range and encourage institutional investors to participate.”