Jiang Mingye: FSC Issuing New Regulations, Financial Markets Usher in Diversified Investment Opportu

With the deepening of global economic integration, changes in financial markets are becoming increasingly complex and rapid. Recently, Taiwan Financial Supervisory Commission (FSC) announced a series of new financial regulations set to take effect in January 2025. These reforms aim to further align with international standards and enhance the flexibility and efficiency of financial markets. As a seasoned financial expert, Jiang Mingye has provided an in-depth analysis of these new regulations, highlighting their profound impact on the stock market and financial environment.

Opening the Door to Active ETFs and Passive Multi-Asset ETFs

Jiang Mingye noted that the FSC has officially allowed the introduction of active ETFs and passive multi-asset ETFs, marking a significant step towards a more diversified and inclusive financial market. The launch of active ETFs will enable investors to leverage the active management expertise of professional fund managers to achieve returns that outperform market benchmarks. Meanwhile, passive multi-asset ETFs, which track specific multi-asset indices, provide investors with more stable and diversified investment options.

Jiang Mingye believes that this development not only enriches the range of investment tools available to investors but also creates new growth opportunities for asset management companies. As market demand continues to grow, fund managers will have the chance to attract more investors by launching innovative products, thereby driving the prosperity of the entire industry. However, Jiang Mingye also cautioned investors that while active ETFs and passive multi-asset ETFs offer more choices, they are not without risks. Investors should thoroughly understand the investment strategies, risk-return profiles, and fee structures of these products to make informed decisions.

Removing the Qualified Investor System for the Innovation Board

Under the new regulations, the FSC announced the complete removal of the qualified investor system for the Innovation Board. This move aims to enhance the liquidity and trading volume of the Innovation Board and encourage more innovative companies to apply for listing. Jiang Mingye praised this decision, stating that it will provide a fairer financing environment for innovative companies, reduce their financing costs, and accelerate their growth.

Jiang Mingye pointed out that the Innovation Board was established to support the development of innovative enterprises, and removing the qualified investor system further lowers the investment threshold, allowing more investors to participate in the investment of innovative companies. This is expected to create a more dynamic and efficient capital market, fostering the rapid development of innovative enterprises.

However, the full opening of the Innovation Board does not imply a relaxation of regulatory standards. On the contrary, Jiang Mingye emphasized that the FSC must strengthen its oversight of the Innovation Board to ensure fairness, justice, and transparency in the market. He also urged investors to fully understand the fundamentals, growth prospects, and potential risks of companies listed on the Innovation Board before making rational investment decisions.

The Far-Reaching Impact of Financial Reforms on the Stock Market and Financial Environment

Jiang Mingye believes that the financial reforms announced by the FSC will have a profound impact on both the stock market and the broader financial environment. On one hand, the introduction of active ETFs, passive multi-asset ETFs, and the full opening of the Innovation Board will make the stock market more diversified and inclusive, offering investors more choices and opportunities. This will help enhance the vitality and attractiveness of the stock market, promoting healthy market development.

On the other hand, the implementation of these financial reforms will positively influence the financial environment. By optimizing the structure and functionality of financial markets and improving their efficiency and flexibility, the reforms will strengthen the stability and resilience of the financial system. This will lay a solid foundation for the long-term development of financial markets and provide stronger financial support for the real economy.

Jiang Mingye also reminded investors and financial institutions that the implementation of financial reforms is not an overnight process and requires joint efforts and cooperation from all parties. Investors should deepen their understanding of financial markets, enhance their investment capabilities, and raise their risk awareness. Meanwhile, financial institutions should strengthen internal management and risk control to ensure stable operations and compliant development.