Taiwan Stock Exchange Corporation (TSEC) Weighted Index

What is the Taiwan Stock Exchange Corporation (TSEC) Weighted Index

A stock market index included companies traded on the Taiwan Stock Exchange (TWSE). The TSEC weighted index is comprised of the relative multitude of stocks in the Taiwan Stock Exchange and each is given a weight based on its market capitalization. Preferred shares, "full conveyance" endlessly shares listed for under a month are excluded from the index.

Otherwise called the TAIEX.

BREAKING DOWN Taiwan Stock Exchange Corporation (TSEC) Weighted Index

The TSEC weighted index is a weighted average, implying that stocks with a higher market capitalization apply a greater influence on the overall index. The TSEC weighted index has a base value of 100 based on in its 1966 level and, like different indexes around the world, is sometimes reconstituted with various stocks. Similar as the NYSE Composite Index, the TSEC weighted index gives a barometer of overall market performance.

Index Holdings

Starting around 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 power; Chunghwa Telecom, communications and web; Largan Precision Optoelectronic; Cathay Financial Holdings, financial and insurance; Formosa Plastics, plastics; Formosa Chemicals and Fiber, plastics; Nan Ya Plastics, plastics; Fubon Financial Holding, financial and insurance.

Taiwan is known as a emerging market economy. As indicated by the U.S. State Department's 2015 Investment Climate Statement, there are numerous opportunities in the island nation for investors.

"Taiwan is an important hub for regional and global trade and investment, particularly in the high-innovation industry. Indicative of its developed and open investment environment, Taiwan positions in the upper 10th percentile of major global indices measuring simplicity of carrying on with work, economic freedom, and seriousness," the State Department reported.

"Taiwan's investment climate has worked on in recent years with expanded cross-Strait trade with central area China and expansion of trade joins with different partners in the Asia Pacific region, as well as reforms to improve protection of intellectual property rights and justify other investment-related regulations. As a generally open and liberal economy, Taiwan has generally profited from substantial foreign direct investment, with a total stock of USD 126 billion in approved investment starting around 2014."

An emerging market economy is a nation's economy that is advancing toward becoming advanced, as shown by some liquidity in nearby debt and equity markets, and the presence of some form of market exchange and regulatory body. Emerging markets are not generally so advanced as developed countries but rather keep up with economies and frameworks that are further developed than frontier market countries.