Taipei Exchange

In order to assist the innovative enterprises to enter into the capital market, the TPEx has established the new board, Pioneer Stock Board (PSB), within the Emerging Stock Market. The amended Rules Governing the Review of Emerging Stocks for Trading on the TPEx and relevant rules regarding PSB has been approved for recordation by the Financial Supervisory Commission on 30 March, 2021. TPEx then announced the amended rules and relevant documents for implementation from 31 March, 2021. Accordingly, with the addition of PSB, the Emerging Stock Market on TPEx will comprise of two sub-boards, i.e., the "Emerging Stock Board” (ESB) and the “Pioneer Stock Board” (PSB).

TPEx indicated that the key features of PSB are as follows: First, the issuer shall be from one of the "Six Core Strategic Industries" or other innovative industries. Second, in order to accelerate the entry into capital market, the issuer could apply to register its stock on the PSB and together with the application it also files to conduct public issuance of the stock. Third, the PSB stocks buyers are limited to qualified investors. Besides, TPEx adopts an automatic matching and execution mechanism (applying to call auction and continuous trading) for the PSB stocks trading, with the recommending securities firms acting as liquidity providers. The daily price limit of a PSB stock shall be 20 percent above or below the reference price of that day.

TPEx noted that in order to comply with the schedule of establishment of trading and information reporting systems, the PSB is expected to be launched in the 3rd quarter, 2021. An investor may engage a securities broker to trade PSB stocks. However, a natural person who is a qualified investor should sign a Risk Disclosure Statement before trading.