The total assets of exchange-traded funds (ETFs) listed in the local equity market rose more than 20 percent from December last year to the end of last month, the Taiwan Stock Exchange (TWSE) said.
The TWSE said that there were 49 ETFs trading on the main board last month, with total assets of NT$247.8 billion (US$7.62 billion), up 20.58 percent from NT$205.5 billion at the end of last year.
With the local ETF market gaining popularity, the average daily turnover for the first five months of this year totaled NT$8.22 billion, up 27.16 percent from an average of NT$6.7 billion for the whole of last year, the TWSE said.
The significant growth in the average trading value in ETF transactions was in sharp contrast to tepid trading on the main board, with many major market players scaling back trading on the local bourse.
TWSE data show that the average daily trading volume of stocks for the first five months of this year was NT$72.55 billion, down from last year’s daily average of NT$82.75 billion.
Market analysts said that ETFs have been well received among investors after the TWSE tried hard to broaden the ETF portfolio, tracking financial products not only at home but also abroad, a move that has allowed the local ETF market to attain a global reach, thereby boosting trading interest.
Taiwan’s ETFs have tracked financial products in several foreign markets, such as Japan, the US, Hong Kong, China, India and Europe.
The TWSE said it is determined to introduce more ETF products to provide investors with a greater number of trading options.
Analysts said that the TWSE has devoted itself to promoting ETF trading by launching various campaigns, including activities to encourage brokerages to take more orders and boost trading.
The TWSE held a contest over the five-month period in which brokerages competed with one another in terms of ETF transaction amounts.
On the back of its efforts to raise ETF trading orders taken by brokerages, the transaction value of ETFs through brokerages in the local market for the first five months of this year rose 68.27 percent from the same period last year to NT$1.06 trillion, the TWSE said.
The January-to-May figure represents a 16 percent increase from the August-to-December period last year, the TWSE said, adding that its campaign has paid off.
In the first five monthsr, the Taipei branch of KGI Securities (凱基證券) ranked as the top ETF dealer, with aggregate transactions topping NT$40.5 billion, the TWSE said.
PERSISTENT RUMORS: Nvidia’s CEO said the firm is not in talks to sell AI chips to China, but he would welcome a change in US policy barring the activity Nvidia Corp CEO Jensen Huang (黃仁勳) said his company is not in discussions to sell its Blackwell artificial intelligence (AI) chips to Chinese firms, waving off speculation it is trying to engineer a return to the world’s largest semiconductor market. Huang, who arrived in Taiwan yesterday ahead of meetings with longtime partner Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), took the opportunity to clarify recent comments about the US-China AI race. The Nvidia head caused a stir in an interview this week with the Financial Times, in which he was quoted as saying “China will win” the AI race. Huang yesterday said
Nissan Motor Co has agreed to sell its global headquarters in Yokohama for ￥97 billion (US$630 million) to a group sponsored by Taiwanese autoparts maker Minth Group (敏實集團), as the struggling automaker seeks to shore up its financial position. The acquisition is led by a special purchase company managed by KJR Management Ltd, a Japanese real-estate unit of private equity giant KKR & Co, people familiar with the matter said. KJR said it would act as asset manager together with Mizuho Real Estate Management Co. Nissan is undergoing a broad cost-cutting campaign by eliminating jobs and shuttering plants as it grapples
The Chinese government has issued guidance requiring new data center projects that have received any state funds to only use domestically made artificial intelligence (AI) chips, two sources familiar with the matter told Reuters. In recent weeks, Chinese regulatory authorities have ordered such data centers that are less than 30 percent complete to remove all installed foreign chips, or cancel plans to purchase them, while projects in a more advanced stage would be decided on a case-by-case basis, the sources said. The move could represent one of China’s most aggressive steps yet to eliminate foreign technology from its critical infrastructure amid a
MORE WEIGHT: The national weighting was raised in one index while holding steady in two others, while several companies rose or fell in prominence MSCI Inc, a global index provider, has raised Taiwan’s weighting in one of its major indices and left the country’s weighting unchanged in two other indices after a regular index review. In a statement released on Thursday, MSCI said it has upgraded Taiwan’s weighting in the MSCI All-Country World Index by 0.02 percentage points to 2.25 percent, while maintaining the weighting in the MSCI Emerging Markets Index, the most closely watched by foreign institutional investors, at 20.46 percent. Additionally, the index provider has left Taiwan’s weighting in the MSCI All-Country Asia ex-Japan Index unchanged at 23.15 percent. The latest index adjustments are to
RSS