Will 0050 Open Non-Dividend Paying Share Classes? Stock Exchange: Direction in 3 Months
Taiwan's Financial Supervisory Commission and Stock Exchange are considering whether to allow existing ETFs to offer non-dividend paying share classes, with the Stock Exchange expected to provide guidance within three months. The discussion also includes the applicability to ETFs with over 30% concentration in a single constituent stock.
📋 Article Processing Timeline
- 📰 Published: May 7, 2026 at 14:02
- 🔍 Collected: May 7, 2026 at 14:31 (29 min after Published)
- 🤖 AI Analyzed: May 7, 2026 at 15:04 (32 min after Collected)
(Central News Agency Reporter Su Szu-yun, Taipei 7th) Legislators are concerned about whether existing ETFs will be allowed to add dividend-paying and non-dividend-paying classes, and whether ETFs holding over 30% in a single constituent stock can apply. The Financial Supervisory Commission (FSC) today stated that it is still under review; the Stock Exchange explained that opinions among industry players in the Securities Investment Trust & Consulting Association differ, with points of contention including whether adding classes should be treated as new funds. Direction can be provided in 3 months.
The Legislative Yuan's Finance Committee today invited FSC Chairman Peng Chin-lung to give a special report on "Promotion and Outlook of Financial Technology Development Business" and be questioned.
Current Yuanta Taiwan 50 (0050) distributes dividends semi-annually. Recently, newly issued Taiwan stock passive ETFs like KGI Taiwan TOP50 (009816) have been promoted as non-dividend reinvestment, attracting many small investors. DPP Legislator Lee Kun-cheng was concerned about whether existing ETFs would be allowed to add dividend-paying and non-dividend-paying classes, and whether this system would set limits for ETFs with over 30% weight in a single constituent stock.
FSC Securities and Futures Bureau Director-General Kao Ching-ping pointed out that industry players have raised relevant demands, and discussions will follow with the Securities Investment Trust & Consulting Association and relevant units to see if a decision can be made.
Currently, market-cap-weighted ETFs, including Yuanta Taiwan 50 and Fubon Taiwan 50 (006208), both hold over 60% in TSMC.
Taiwan Stock Exchange Chairman Lin Hsiu-ming explained that there are many investment trust companies issuing ETFs, and the association is also seeking consensus among members. Currently, various asset management companies and investment trust companies have different opinions, so the association still needs to coordinate industry opinions, and is expected to provide a general direction in 3 months.
TWSE General Manager Lee Ai-ling further explained that industry players have differing opinions. Taking 0050 as an example, if a "non-dividend paying" class is added, should it be regarded as a newly issued ETF? If ETFs holding over 30% in a single stock are restricted from adding classes, it may also affect some existing ETFs.
Legislators are concerned that if ETFs are allowed to add dividend-paying or non-dividend-paying classes, it could drive continued market growth. Peng Chin-lung pointed out that if new products meet market demand, they will naturally drive scale growth. The FSC hopes for diversified market development, and if there are such appeals reflecting relevant demands, it is currently under review.
Regarding the trading hours for odd lots of Taiwan stocks, the FSC previously stated that it is evaluating advancing odd lot trading hours from the current 9:10 AM to 9:00 AM, with the earliest implementation by the end of July next year.
Lin Hsiu-ming pointed out that further communication with brokerages is needed, hoping for an earlier implementation. (Editor: Yang Lan-hsuan) 1150507
Choose to stand with facts, every sponsorship of yours is a force to protect press freedom.
Download the Central News Agency's "First-hand News" APP to stay updated with the latest news.
The text, images, and audio-visual content on this website may not be reproduced, publicly broadcast, or publicly transmitted and utilized without authorization.
The Legislative Yuan's Finance Committee today invited FSC Chairman Peng Chin-lung to give a special report on "Promotion and Outlook of Financial Technology Development Business" and be questioned.
Current Yuanta Taiwan 50 (0050) distributes dividends semi-annually. Recently, newly issued Taiwan stock passive ETFs like KGI Taiwan TOP50 (009816) have been promoted as non-dividend reinvestment, attracting many small investors. DPP Legislator Lee Kun-cheng was concerned about whether existing ETFs would be allowed to add dividend-paying and non-dividend-paying classes, and whether this system would set limits for ETFs with over 30% weight in a single constituent stock.
FSC Securities and Futures Bureau Director-General Kao Ching-ping pointed out that industry players have raised relevant demands, and discussions will follow with the Securities Investment Trust & Consulting Association and relevant units to see if a decision can be made.
Currently, market-cap-weighted ETFs, including Yuanta Taiwan 50 and Fubon Taiwan 50 (006208), both hold over 60% in TSMC.
Taiwan Stock Exchange Chairman Lin Hsiu-ming explained that there are many investment trust companies issuing ETFs, and the association is also seeking consensus among members. Currently, various asset management companies and investment trust companies have different opinions, so the association still needs to coordinate industry opinions, and is expected to provide a general direction in 3 months.
TWSE General Manager Lee Ai-ling further explained that industry players have differing opinions. Taking 0050 as an example, if a "non-dividend paying" class is added, should it be regarded as a newly issued ETF? If ETFs holding over 30% in a single stock are restricted from adding classes, it may also affect some existing ETFs.
Legislators are concerned that if ETFs are allowed to add dividend-paying or non-dividend-paying classes, it could drive continued market growth. Peng Chin-lung pointed out that if new products meet market demand, they will naturally drive scale growth. The FSC hopes for diversified market development, and if there are such appeals reflecting relevant demands, it is currently under review.
Regarding the trading hours for odd lots of Taiwan stocks, the FSC previously stated that it is evaluating advancing odd lot trading hours from the current 9:10 AM to 9:00 AM, with the earliest implementation by the end of July next year.
Lin Hsiu-ming pointed out that further communication with brokerages is needed, hoping for an earlier implementation. (Editor: Yang Lan-hsuan) 1150507
Choose to stand with facts, every sponsorship of yours is a force to protect press freedom.
Download the Central News Agency's "First-hand News" APP to stay updated with the latest news.
The text, images, and audio-visual content on this website may not be reproduced, publicly broadcast, or publicly transmitted and utilized without authorization.