Taiwan’s financial media conglomerate Chairman Xie Jinhe recently took to Facebook with the title “Taiwan’s stock market finally takes a seat at the global table!” In his post, he pointed out the impressive economic growth performance in Taiwan during the first half of this year. The mid-year reports showed that 4 companies had earnings per share (EPS) exceeding 100 New Taiwan Dollars (NTD), with 183 companies earning more than their total capital.
Xie Jinhe emphasized that despite several stocks experiencing a significant drop earlier due to the Korean stock market downturn, the subsequent release of mid-year reports showed a substantial increase in profits, leading to a rapid surge in stock prices, once again reaching new highs.
According to Xie Jinhe, Taiwan Stock Exchange Chairman Lin Xiuming told him that Taiwan’s economy has made significant strides in recent years, with a flourishing capital market. Major global exchanges are actively seeking collaborations with Taiwan, indicating a growing influence. Lin Xiuming also mentioned that in the past, Taiwan used to sit at the side tables during global securities market conferences, but now it can proudly claim a seat at the main table.
Xie Jinhe noted that Lin Xiuming’s statement highlights Taiwan’s stock market climbing to the fourth position globally in terms of market capitalization, steadily increasing both its stature and influence. It’s worth mentioning that Taiwan’s strength in artificial intelligence (AI) is also rapidly advancing amidst the technological tide.
President of the Republic of China (Taiwan), Lai Ching-te, revealed on the 17th that the latest economic figures announced by the Directorate-General of Budget, Accounting and Statistics on the 14th show a continuous upward trend in Taiwan’s economic performance. Compared to previous forecasts, the economy has displayed stronger resilience, with three consecutive quarters of double-digit growth. The projected annual economic growth rate for the year has been revised from 9.64% to 11.05%, potentially setting a new high record in 39 years.
Lai Ching-te pointed out that with the upward trajectory of economic growth, the total revenue for the central government’s budget for the year 2027 has also increased to 3.9266 trillion NTD. Under the premise of maintaining a balanced budget with no new debt, an additional 235.7 billion NTD will be allocated for next year, aiming to distribute cash bonuses to the public, providing each person with 10,000 NTD, in the spirit of “AI dividends for all.”
Xie Jinhe remarked that with the release of this year’s mid-year reports, all listed companies have delivered outstanding performance. The net profit for the first six months totaled 3.6 trillion NTD, with just the second quarter at 2.03 trillion NTD surpassing the entire annual sum prior to 2019. Extrapolating from this benchmark, there is a potential challenge to reach 8 trillion NTD in annual net profit for this year. He reiterated that the substantial increase in individual and corporate income taxes from this year to the next is evident.
“In the mid-year reports this year, four companies – Quanta, Yidong, Prime View, and Chuanhu – had EPS exceeding 100 NTD. Also, 183 companies earned more than their total capital. Even at the 100th position in the EPS ranking, the figure stands at a commendable 14.72 NTD, showcasing the rapidly improving profitability of Taiwanese enterprises,” Xie Jinhe stated.
He mentioned that in July, Taiwan’s stock market experienced a surge in stock prices following a downturn in the Korean stock market, indicating a substantial profit growth as reported in the mid-year reports. This upward trend in stock prices has led to an increase in market capitalization, prompting companies to be more proactive in their capital expenditures.
Xie Jinhe emphasized that this year, TSMC’s capital expenditure is 640 billion US dollars, potentially rising to 850 billion US dollars next year. Meanwhile, UMC and KYEC both have 500 billion US dollars, and companies like Siliconware Precision Industries and Taisol Group are also investing heavily in expanding their manufacturing facilities – marking an essential stride for Taiwan as it confidently moves towards the global stage.