Taiwan became the world’s fifth-largest stock market on 25 May 2026

Taiwan became the world’s fifth-largest stock market on 25 May 2026

¨     Taiwan became the world’s fifth-largest stock market on 25 May 2026.

¨     Taiwan’s market capitalisation reached US$4.95 trillion.

¨     India’s stock market value stood at US$4.92 trillion.

¨     Taiwan overtook India after a sharp rally in Taiwan Semiconductor Manufacturing Co. (TSMC).

¨     TSMC is the world’s largest contract chipmaker.

¨     The latest global stock market ranking includes the United States, mainland China, Japan, Hong Kong, Taiwan, and India.

¨     Taiwan had earlier surpassed Canada and the United Kingdom in April 2026.

¨     TSMC is a major constituent of Taiwan’s benchmark stock index.

¨     The company accounts for more than 42% of Taiwan’s benchmark index, making the market highly concentrated.

¨     TSMC shares surged 49% in 2026 by 26 May due to strong demand for artificial intelligence semiconductors.

¨     AI semiconductors are widely used in data centres, graphics processing, and machine learning systems.

¨     India’s market capitalisation declined because of record foreign investor outflows in 2026.

¨     Other factors behind the decline included elevated valuations, a weaker rupee, rising energy costs, and slower corporate earnings growth.

¨     Taiwan’s financial regulator increased the investment ceiling for domestic funds in a single stock to 25% of net assets.

¨     The new rule may increase domestic fund exposure to companies like TSMC and influence investment allocation patterns.