Taiwan's Innovation Board versus Shanghai's STAR Market: A Hope for the Future

Originally published 2022-12-30Robin's commentary

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English translation of the Chinese post originally published 2022-12-30. Translated 2026-10-25 with AI assistance. Historical figures and claims have not been updated or independently verified. 中文原文

Reading guide

Robin compares the markets: the Shanghai Stock Exchange STAR Market listed its first 25 companies in July 2019 and reached 500 in just over three years, raising RMB759.4 billion through IPOs with a total market capitalization approaching RMB6 trillion. Taiwan's Taipei Exchange had 808 listed companies worth NT$4.428 trillion, making STAR about 5.8 times larger by market value. STAR attracts hard-tech companies and supports investment in early-stage, small, technology-focused businesses. Nearly 90% of its companies had private-equity or venture-capital backing before listing. Market capitalization plus revenue can qualify a company without profitability; investors need two years of experience and at least RMB500,000 in their securities accounts. Robin hopes that after three to five years of development, Taiwan's Innovation Board can reach one-tenth of STAR's scale and significantly advance innovation investment in Taiwan. Figures reflect year-end 2022.

Key points

In just over three years, STAR reached 500 companies, RMB759.4 billion in IPO proceeds, and nearly RMB6 trillion in market value.
Nearly 90% of STAR companies had private-equity or venture-capital backing before listing.
Listing criteria can exclude profitability; investors face two-year experience and RMB500,000 thresholds.
Robin hopes that reaching one-tenth of STAR's scale would significantly advance innovation investment in Taiwan.

Columns and beams in an open building are connected by central rods and balanced weights, suggesting structure and checks in governance. — Capital markets & governanceThematic illustration · AI generated

Full text — English translation

The TWSE Taiwan Innovation Board versus the Shanghai Stock Exchange STAR Market. First, a look at Shanghai's STAR Market after three years of operation. On July 22, 2019, the first 25 STAR companies listed. After just over three years, the number reached 500, with combined IPO proceeds of RMB759.4 billion and total market capitalization approaching RMB6 trillion. To put RMB6 trillion in perspective: Taiwan's Taipei Exchange (TPEx) had 808 listed companies with a combined market capitalization of NT$4.428 trillion on December 29, 2022. A preliminary currency conversion puts STAR's market capitalization at 5.8 times TPEx's. STAR continues to attract “hard-tech” companies, supporting venture capital investment that is early-stage, small-company, and technology-focused. Statistics indicate that nearly 90% of STAR companies received private-equity or venture-capital backing before listing. Institutional and early-stage investors pass the baton, supporting a high-quality circulation of technology, capital, and the real economy. STAR's listing requirements are essentially market capitalization plus revenue; profitability need not be considered. STAR also restricts investor eligibility: at least two years of investing experience and no less than RMB500,000 in a securities account. －－－－ Many people are still taking a wait-and-see approach to Taiwan's Innovation Board. My personal hope is that, with three to five years of effort, it can reach one-tenth of STAR's scale. That would give an enormous boost to innovation investment in Taiwan.

These articles are personal notes, book excerpts, and collected reprints. Figures and events reflect the time of the original publication, are not current information, and do not constitute investment advice.

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