The Financial Supervisory Commission (FSC) is planning to introduce a corporate governance index so that Taiwan’s stock market will be able to stay competitive and keep up with the rest of the world.
FSC Chairman William Tseng said on Monday that implementing an index of corporate governance is in keeping with global trends.
Tseng said that growth in Taiwan’s Exchange Traded Funds (ETF) also played a role in the FSC’s decision to introduce the index.
He said the ETF rose from NT$280 billion (US$9.3 billion) in 2013 to NT$430 billion (US$14.3 billion) last year. He also said that trading in the first five months of this year reached NT$470 billion (US$15.6 billion), far surpassing last year’s volume.
Tseng said companies with good corporate governance are generally more efficient and make more money.
"We are urging institutional and individual investors to invest in companies that have better corporate governance," said Tseng.