Taiex surpasses Hong Kong’s Hang Seng for first time in 30 years
Taiwan’s stock market has surpassed Hong Kong’s for the first time in 30 years. At the end of trade on Tuesday, the Taiex stood at 17,341 points, higher than the Hang Seng’s 17,329. Just five years ago, the Hang Seng was flying high at 33,484 points. Taiwan’s market was just at around 11,000. But since then, Taiwan’s economy has taken off, while Hong Kong’s has floundered due to China’s post-pandemic struggles.
Taiwan’s stock market edged up on Wednesday, extending the previous day’s gains to end at 17,370 points. Analysts say the index could soon challenge this year’s high.
Edward Chen
First Capital Management chair
This year, overall corporate profits should reach about NT$3 trillion. Next year we’re looking at NT$1.95-2 trillion in cash dividends, for a dividend rate that exceeds 4%. So in that respect, the fundamentals are strong. Also, next year’s GDP growth will likely exceed this year’s 1.42%.
Analysts say that next year, investor optimism about AI could drive double-digit industry growth. This month, a surge of foreign capital has moved the Taiex higher by 600 points. Taiwan’s stock market now stands higher than Hong Kong’s for the first time since 1992.
Chen Chien-jen
Premier
The economy is indeed developing quite well. The stock market is a window into economic development. It also shows that President Tsai’s policies are on the right path.
Edward Chen
First Capital Management chair
If your investment strategy is to stand on the shoulders of giants, giants like Microsoft, Google, Amazon, as well as Meta, plus NVIDIA, Intel, and AMD – then you would be looking at Taiwan. Taiwan’s stock market, with its emphasis on electronics, would be more attractive than Hong Kong.
The Hang Seng Index stood above 33,000 points in 2018, and has since fallen to 17,000. In just a few years, Hong Kong’s stock market deteriorated, affected by China’s slow economic recovery from the pandemic. In contrast, Taiwan’s industrial development has boomed. For foreign investors that want to invest in Asia, the Taiex has the potential to become the main point of entry, experts say. They say that the next challenge for Taiwan is to outperform Hong Kong in market value.
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2023-11-29
