Taiwan stock market jumps to the fourth largest market in the world. Have Taiwanese people really become rich?

■Chen Zhaowei

On September 23, 2026, Taiwan's capital market ushered in a historical moment worthy of being recorded in history: the weighted index closed at 48,157.29 points, setting a new all-time high; the total market value of Taiwan's stocks calculated in the afternoon of that day reached approximately US$5.3 trillion, surpassing India's US$4.94 trillion in one fell swoop, and becoming the fourth largest stock market in the world.

Taiwan's stock market closed at 48,157.29 points on September 23, 2026, setting a new all-time high, with a total market capitalization of approximately US$5.3 trillion, overtaking India's US$4.94 trillion in one fell swoop, becoming the fourth largest stock market in the world. (File photo)

Driven by the comprehensive explosion of competitiveness in the technology industry, the surge in Taiwan stock market value undoubtedly demonstrates the key pricing power of Taiwanese companies in the global capital map. However, when the whole Taiwan is immersed in the aura of "the fourth in the world", a more essential and more relevant question emerges: Taiwan's stock market has become so rich, have Taiwanese people really become rich at the same time?

The surge in stock market value means that global funds are willing to use extremely high valuation multiples to evaluate a few top companies with global moats. But "increase in corporate value" never equals "homogeneous growth in wealth for all households." There are two structural barriers that are rarely examined in depth:

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1. Wealth outflow effect under foreign shareholding structure

The proportion of foreign ownership in large-capitalization stocks, which has boosted Taiwan's stock market value, has been as high as 50% to 70% for many years. In other words, every time the market value of Taiwan's stock market crosses the one-trillion-dollar mark, the resulting huge dividend distributions and capital gains are essentially enjoyed by global sovereign funds, pension funds, and multinational institutional legal persons, and not all of them are converted into local private purchasing power in Taiwan.

2. The acceleration of capital returns on salary income

Dividends from rising stocks will ultimately flow only to "those who hold assets." The latest national wealth statistics from the General Accounting Office show that although the net worth of Taiwan’s household sector has exceeded 183 trillion yuan, the official also reminds us that the average household wealth is easily inflated by the high-income class and cannot represent the actual feelings of the general public. If a family only relies on a fixed salary and lacks financial asset allocation, then the Taiwan stock market rushes from 30,000 points to 48,000 points. Not only will it not be able to help him raise his salary, but he may suffer a relative sense of deprivation from the shrinkage of real purchasing power in an environment where asset spillovers push up inflation and rents.

However, positive structural changes are also taking place within the market. The latest statistics from the central bank show that the balance of securities transfer deposits soared to a record high of 4.5712 billion yuan in August, a huge increase of nearly 390 billion yuan in a single month. This clearly proves that private funds are accelerating from traditional time deposits and real estate to the securities market.

With the introduction of new financial products, it is now easier for Taiwanese people to directly hold equity in high-quality companies through low-threshold instruments such as ETFs and odd lots. When a wider range of people can participate in the market through a long-term, decentralized mechanism, the surplus created by companies in the global market will truly have the institutional foundation to be transformed into "wealth shared by all."

However, participating in the market does not mean guaranteed profit. If investors blindly chase prices when the market is at its hottest, use excessive leverage, or even spend short-term book profits as income, then once the stock market reverses with the boom, the so-called wealth effect will be quickly reversed.

Taiwan's stock market ranks fourth in the world, leaving society with the most profound reflection: for a mature capital market, the ultimate goal is not how many round numbers the index reaches, but whether the excess value created by these world-class companies can flow back to us ordinary people steadily through the dividend, employment and retirement systems.

Instead of worrying about how much higher the index can rise every day, it is better to ask yourself whether you have established a rational asset allocation discipline. Only by learning to work with the long-term growth of outstanding companies can we have the confidence to truly answer - the prosperity of this capital market is indeed closely related to every Taiwanese.

(The author is the senior vice president of the Digital Business Department of Qunyi Jinding Securities Company)

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