Recently, some friends asked me about Taiwan's Innovation Board and the Strategic New Board, and I realized that many people are still somewhat unfamiliar with these two sectors. Today, I want to share some of my observations with everyone.

In 2021, Taiwan launched the Innovation Board and the Strategic New Board mainly to create new listing channels for innovative companies. The Innovation Board is listed on the stock exchange and targets companies with core technologies and innovation capabilities, such as those in IoT, AI, big data, and similar fields, with a market value threshold set at NT$1 billion or more. The Strategic New Board is in the OTC market, positioning itself more towards small and medium-sized enterprises, with relatively lower thresholds. Interestingly, companies on the Strategic New Board can upgrade to the Innovation Board once they reach a certain stage of development, forming a clear growth pathway.

Regarding the current situation, there are only four stocks listed on the Innovation Board—NaiChuang Technology-KY, Hongde Energy, Cloud Leopard Energy, and Yitian Cool Qi. There were originally more companies listed on the Strategic New Board, but most have already moved to the regular OTC market, leaving only Pinyuan, General Stem Cells, and Yijun Environmental Science still listed.

In terms of trading rules, because these two sectors carry relatively higher risks, certain restrictions are in place. For example, day trading and margin trading are not allowed. The daily price limit for the Innovation Board is 10%, while the first five trading days on the Strategic New Board have no price limit, followed by a 20% limit afterward. The minimum trading unit is 1,000 shares, and odd-lot trading can only be done after hours. These rules are designed to protect investors.

As for investment opportunities, I believe there is indeed attractiveness. Previously, it was difficult for innovative companies to go public, but now with these two dedicated sectors, investors can participate more directly in early-stage and growth companies, which is meaningful for diversified portfolios. Moreover, these companies are supported by the Taiwanese government, and their development prospects are relatively optimistic. However, risks should not be overlooked—these are high-risk investments, with the possibility of startup failures, limited market liquidity, and often higher volatility.

A practical issue here is the investment threshold. To participate in the Innovation Board and the Strategic New Board, one must meet the criteria of a "qualified investor." Simply put, either a legal entity with over two years of securities trading experience, or an individual with proof of NT$5 million in assets, or an average annual income of NT$1.5 million over the past two years. This means ordinary retail investors generally cannot qualify, which is also why many people are unfamiliar with these two sectors.

If you happen to meet the qualified investor criteria, what would I suggest? First, consider IPO investing—these stocks tend to rise initially after listing, so it’s wise to sell once the initial hype subsides. Second, pay close attention to trading volume. In an environment where liquidity is scarce, stocks with higher trading volume tend to be more stable. NaiChuang Technology-KY has the most active trading volume among Innovation Board stocks, making it worth watching.

Honestly, if you don’t meet the qualified investor standards, don’t be too disappointed. Many compare Taiwan’s Innovation Board to the U.S. NASDAQ, but the NASDAQ’s investment threshold is much lower, and it offers a richer array of quality tech companies. Over the past decade, the NASDAQ 100 index has quadrupled, and such returns are actually more worth paying attention to. For small investors, investing through index funds or related tools that target global innovative companies might be a more practical choice.

Overall, innovative companies are indeed the future development direction. The emergence of Taiwan’s Innovation Board and the Strategic New Board reflects this trend. The number of qualified investors has already exceeded 190k, and more companies will join in the future. But whether you invest directly in these two sectors or choose other ways to participate in the growth of innovative companies, the key is to make decisions based on your own situation and risk tolerance. Innovation investing itself isn’t about right or wrong—it's about whether it suits you.