The Taiwanese Retail Investment Market

by Hua Zhang, June 24, 2008

Abstract

Beijing, China June 24, 2008

Taiwan's retail investors are among the most active in the world. An estimated 15% of Taiwan's 6.5 million retail investment accounts, or 975,000 accounts, belong to active traders.

In a new report, , Celent analyses the characteristics of Taiwan's retail securities market. The report provides a classification of retail traders, financial products and the market, and the competitive landscape. It looks at contributions by investors in different categories based on capital allocation, educational background, age and geographic location, and other characteristics.

Compared to the mature markets of Hong Kong, Taiwan’s GDP is lower, reflecting the fact that it is still developing. The banking industry is more fragmented, leading to increased competition. In terms of foreign investors, Taiwan’s financial markets are nearly as open as markets in the surrounding areas.

"Although participation by institutional and foreign investors is growing, domestic retail investors still dominate Taiwan’s investment market," says Hua Zhang, Celent analyst and author of the report. "While the retail futures market is significant, equities are the investment product most favored by Taiwan’s individual investors."

This report presents a competitive analysis of Taiwan's retail brokerage industry. Market leaders discussed in the report include YuanTa Securities, Polaris Securities, SinoPac Securities, Central Trust of China, and Jih Sun Securities, with detailed tables presenting these brokerages’ features and marketing strategies.

The report also presents an overview of Taiwan's futures and options brokers as well as online brokerages. It compares Taiwan's financial market to the markets in its surrounding areas. Additionally, it covers the following markets in Taiwan: foreign exchange, bonds and securities, futures, and options.

The 34-page report contains three tables and 25 figures. A table of contents is available online.

 

Members of Celent's Wealth Management research service can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.

 

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
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Tel: +1 212 345 1366

Europe (London)
Chris Williams
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Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Beijing, China June 24, 2008

 

Executive Summary 3
Classification of Retail Traders 5
  Charles Schwab's Classification Approach 5
  Features of Investors 7
  Summary 15
Financial Products and Markets 17
  Overview of Taiwan's Financial Markets 17
  Weighting of Investors of Various Product Categories 18
  Equity Stock Markets 19
  Fund Markets 21
  Futures Markets 25
  Summary 27
Competitive Landscape 29
  Securities Traders 29
  Online Trading 30
  Summary 33
Conclusion 35

 

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