Taiwan Positions Itself as Asia’s Next AI and Innovation Capital
Taiwan is stepping up its ambitions to become the region’s leading innovation and AI hub. Through the newly launched «Asia Innovation Capital» initiative, the Financial Supervisory Commission aims to modernize capital markets, attract global issuers, and channel financing into next-generation industries.
The Financial Supervisory Commission (FSC), in collaboration with the Taiwan Stock Exchange and the Taipei Exchange, unveiled a comprehensive reform program aimed at strengthening Taiwan’s position as a hub for innovation finance.
FSC Chairman Peng Jin-lung described the initiative as «instrumental in driving long-term industrial development and strengthening the global competitiveness of our capital markets.»
Flexible Financial Options
The new framework provides flexible financing options and builds on Taiwan’s vision of an «Innovative Economy, Smart Taiwan.»
By integrating resources across equity and bond markets, it seeks to foster an ecosystem that supports both startups and mature enterprises in high-growth sectors such as artificial intelligence and digital transformation.
13 Reforms Across Equity and Bond Markets
At the heart of the «Asia Innovation Capital» are 13 targeted measures designed to make Taiwan’s markets more accessible, liquid, and globally attractive.
On the equity side, the program enhances the Taiwan Innovation Board with new day-trading capabilities to improve liquidity and simplifies listing rules for foreign firms. This includes abolishing the requirement for a majority of directors to reside in Taiwan, shortening underwriter appointment periods, and reducing the duration of mandatory internal control audits post-IPO.
Bond market reforms are equally bold. They allow dual listings of foreign currency-denominated bonds, broaden eligibility for foreign issuers, and expand fundraising options for international companies. Together, these changes aim to deepen market inclusivity and position Taiwan as a key hub for cross-border capital.
Building Taiwan’s AI-Driven Financial Future
According to Peng, the initiative will «help enterprises access flexible financing through both equity and bond channels, enabling them to plan for long-term growth and transformation.»
The FSC’s broader goal is to create a dynamic, innovation-friendly market environment that accelerates industrial upgrading and attracts global investors seeking high-quality opportunities in Asia’s emerging AI economy.
With its strategic reforms and focus on technological innovation, Taiwan is signaling its intent to compete head-on with Hong Kong and Singapore – and to become Asia’s next powerhouse for AI-driven capital formation.
