The stock markets in East Asia are engaged in increasing competition among themselves and the Shanghai Stock Exchange (SSE) will become a fierce competitor of the Taiwan Stock Exchange, according to TSE's president Fortune Ju (
Ju said that the East Asia markets provide an environment for investors to make cross-market investments. The 10-year-old SSE has become the biggest threat to TSE since its market capitalization has already surpassed that of the latter, Ju added.
In late October, the market capitalization of companies listed on the TAIEX totaled US$211.7 billion, ranking fifth in the region, behind Tokyo, Hong Kong, Shanghai and Shengchen.
Ju said that as more and more businesses in Taiwan are investing in China, the huge amount of capital outflow will also cause disadvantages to the TSE.
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