Taiwan's government is stepping up efforts to encourage startups to pursue initial public offerings (IPOs) domestically, aiming to retain capital that might otherwise flow to markets like Hong Kong, Singapore, the US, and Japan. With Taiwan's banking loans nearing NT$43.9 trillion (approx. US$1.43 trillion), the total market value of listed companies reaching NT$86.9 trillion, and insurance assets totaling NT$36.9 trillion, lawmakers have urged authorities to pursue strategies to keep innovation funding within Taiwan.
During his report to the legislature on October 13, Financial Supervisory Commission (FSC) chairman Jin-lung Peng acknowledged a year-on-year drop in pre-tax earnings in the banking, securities, futures, and insurance sectors from January to August 2025, falling by NT$215.2 billion compared to the same period last year to NT$604.1 billion (US$19.7 billion), due to appreciation of the New Taiwan Dollar.
Even so, Taiwan's financial intermediaries have remained robust: as of the end of the second quarter, domestic banks maintained an average capital adequacy ratio of 15.65%, well above the 10.5% regulatory minimum, with non-performing loan ratios at just 0.16%, while total lending stood at NT$43.9329 trillion.
Meanwhile, the total number of listed companies reached 1,909, with total market capitalization rising 16.24% year-on-year to approximately NT$90.36 trillion. Insurance premium income increased by NT$178.9 billion year-over-year to NT$1.9148 trillion, while total insurance assets grew by NT$128.4 billion year-over-year to NT$36.9727 trillion.
Concerns have grown as some Taiwanese startups opt for IPOs abroad—as an example, Appier recently went public in Japan—while others use special purpose acquisition companies (SPACs) to list on overseas exchanges like Nasdaq in the US. The government is therefore taking steps to retain homegrown startups and attract foreign innovators to raise funds through Taiwan's capital markets.
The FSC has announced plans to host a "2025 Taiwan Week" event starting October 21, in conjunction with the Taiwan Stock Exchange, Taipei Exchange, Taiwan Futures Exchange, and Taiwan Depository and Clearing Corporation, which will include the launch ceremony of the Asia Innovation Financing Platform, an industry innovation forum, and the Asia Innovation Cup finals.
The Asia Innovation Financing Platform aims to enhance Taiwan's capital market competitiveness by relaxing and refining regulations related to the innovation board and bond markets. This initiative seeks to accelerate the concentration of key industries, foster a comprehensive innovation ecosystem, and establish Taiwan as a regional hub for startups and capital markets with dual equity and debt financing channels.
Over 70 teams are participating in the Asia Innovation Cup finals, including nine foreign startups from Singapore, Malaysia, Japan, and Finland. These ventures span diverse sectors such as artificial intelligence, digital cloud services, satellite communications, smart healthcare, and semiconductors.
Article translated by Kevin Wang and edited by Jack Wu
