What is the Taiwan Stock Exchange Corporation (TSEC) Weighted Index
A stock market index comprised of companies traded on the Taiwan Stock Exchange (TWSE). The TSEC weighted index is made up of all the stocks in the Taiwan Stock Exchange and each is given a weight based on its market capitalization. Preferred shares, "full delivery" shares, and shares listed for less than a month are excluded from the index.
Also known as the TAIEX.
BREAKING DOWN Taiwan Stock Exchange Corporation (TSEC) Weighted Index
The TSEC weighted index is a weighted average, meaning that stocks with a higher market capitalization exert a greater influence on the overall index. The TSEC weighted index has a base value of 100 based on in its 1966 level and, similar to other indexes around the world, is occasionally reconstituted with different stocks. Much like the NYSE Composite Index, the TSEC weighted index provides a barometer of overall market performance.
As of 2016, these were the top holdings of the index and their industries:
Taiwan Semiconductor Manufacturing, semiconductor; Hon Hai Precision Ind., other electronic; Formosa Petrochemical, oil, gas, and electricity; Chunghwa Telecom, communications and internet; Largan Precision Optoelectronic; Cathay Financial Holdings, financial and insurance; Formosa Plastics, plastics; Formosa Chemicals & Fibre, plastics; Nan Ya Plastics, plastics; Fubon Financial Holding, financial and insurance.
Taiwan is known as an emerging market economy. According to the U.S. State Department's 2015 Investment Climate Statement, there are many opportunities in the island nation for investors.
"Taiwan is an important hub for regional and global trade and investment, especially in the high-technology industry. Indicative of its developed and open investment environment, Taiwan ranks in the upper tenth percentile of major global indices measuring ease of doing business, economic freedom, and competitiveness," the State Department reported.
"Taiwan’s investment climate has improved in recent years with expanded cross-Strait trade with mainland China and expansion of trade links with other partners in the Asia Pacific region, as well as reforms to enhance protection of intellectual property rights and rationalize other investment-related regulations. As a relatively open and liberal economy, Taiwan has historically benefited from substantial foreign direct investment, with a total stock of USD 126 billion in approved investment as of 2014."
An emerging market economy is a nation's economy that is progressing toward becoming advanced, as shown by some liquidity in local debt and equity markets, and the existence of some form of market exchange and regulatory body. Emerging markets are not as advanced as developed countries but maintain economies and infrastructures that are more advanced than frontier market countries.