FSC Unveils Asia Innovation Capital to Strengthen Taiwan’s Role in Regional Finance

The initiative introduces 13 reforms aimed at expanding funding access, enhancing AI-driven growth, and modernizing Taiwan’s capital markets.

Taiwan has announced the launch of the Asia Innovation Capital initiative, a strategic program designed to strengthen its capital markets and position the country as a regional hub for innovation and artificial intelligence (AI).

The Financial Supervisory Commission (FSC), together with the Taiwan Stock Exchange (TWSE) and Taipei Exchange (TPEx), launched the initiative to provide more flexible financing channels for both domestic and international companies. The program marks a major step in Taiwan’s broader push to modernize its capital markets, attract foreign investment, and advance its “Innovative Economy, Smart Taiwan” agenda.

Strengthening Taiwan’s Capital Market Competitiveness

“This initiative is instrumental in driving long-term industrial development and strengthening the global competitiveness of our capital markets,” said FSC Chairman Peng Jin-lung. He noted that the program aims to create an environment where innovative enterprises can scale effectively while reinforcing Taiwan’s ambition to become Asia’s leading asset management hub.

The program builds on the Asian Asset Management Center’s Capital Market Growth Plan and integrates government, regulatory, and exchange-level support. It also establishes a dedicated service team to help companies navigate listing and compliance procedures, ensuring smoother capital access for businesses in key growth industries.

A Dual-Channel Approach: Equity and Bond Markets

The Asia Innovation Capital initiative introduces 13 targeted reforms across both the equity and bond markets to promote flexibility, inclusivity, and innovation.

On the equity side, the reforms aim to make the Taiwan Innovation Board more accessible and liquid by:

• Introducing day trading to increase trading activity and market depth
• Simplifying listing requirements for foreign companies, including removing the rule that a majority of directors must reside in Taiwan
• Shortening the compliance assistance period for lead securities underwriters
• Reducing the number of years required for post-IPO internal control audit reports
  

The FSC is also easing margin trading rules and increasing flexibility in board transition policies, allowing companies to adapt more effectively to changing market conditions.

Expanding the Bond Market and International Participation

In the bond market, the initiative aims to diversify fundraising channels and attract more international issuers.

Key measures include:

• Allowing foreign currency-denominated bonds issued offshore to be dual-listed in Taiwan, expanding market scale and liquidity
  
• Relaxing eligibility criteria for foreign companies seeking to issue bonds domestically
  
• Encouraging participation from international investors and corporate issuers to deepen Taiwan’s bond market integration with regional and global finance
  

These measures are expected to strengthen Taiwan’s reputation as a cross-border financing center, offering enterprises multiple avenues to raise capital efficiently.

Supporting Innovation-Driven Industrial Transformation

Chairman Peng emphasized that the initiative will help companies “access flexible financing through both equity and bond channels,” enabling them to plan for long-term growth and transformation.

By improving market efficiency and regulatory clarity, the FSC hopes to create a more dynamic ecosystem that supports AI, semiconductors, green technology, and digital transformation sectors — industries that are central to Taiwan’s next phase of economic growth.

The reforms are also designed to attract more venture capital and institutional investors, providing new opportunities for high-potential startups to secure funding and scale across Asia.

Building a Future-Ready Capital Market

The FSC’s broader goal is to foster a dynamic, inclusive, and innovation-driven capital market that supports the growth of emerging industries while maintaining investor confidence.

Through regulatory enhancements, incentive structures, and cross-border collaboration, the Asia Innovation Capital initiative aims to:

• Accelerate industrial transformation
  
• Broaden access to high-quality investment opportunities
  
• Increase global visibility for Taiwan’s capital markets
  
• Strengthen the country’s position as a regional financial hub
  

“This initiative is designed to help enterprises access flexible financing through both equity and bond channels, enabling them to plan for long-term growth and transformation,” Peng reiterated.

Quick Takeaways

• Initiative: Asia Innovation Capital, launched by Taiwan’s FSC with TWSE and TPEx
• Goal: Strengthen capital markets, attract foreign investment, and drive AI-led innovation
• Scope: 13 targeted reforms across equity and bond markets
• Equity Measures: Day trading, relaxed foreign listing rules, flexible board policies
• Bond Measures: Dual listings for foreign currency bonds, relaxed eligibility for overseas issuers
• Vision: Aligns with “Innovative Economy, Smart Taiwan”
• Impact: Supports industrial transformation, global competitiveness, and inclusion in Asia’s innovation economy