Overview
- Bloomberg data showed Taiwan's market capitalisation reached US$4.95 trillion, narrowly above India's US$4.92 trillion based on figures compiled for May 25, 2026.
- Taiwan's gain is dominated by Taiwan Semiconductor Manufacturing Co, which makes up more than 42% of the benchmark index after a roughly 49% share-price rally in 2026.
- In April Taiwan's regulator raised the limit for domestic funds' single-stock holdings from 10% to 25%, a change that JPMorgan estimates could attract more than US$6 billion of inflows to top-listed names.
- The shift in rankings does not change underlying economies: IMF estimates place India's GDP at about US$4.15 trillion versus Taiwan's US$977 billion, showing market value can diverge from economic size.
- Heavy reliance on one company increases vulnerability to a sell-off, so investors should watch TSMC share moves, domestic fund buying patterns, and chip demand tied to the AI hardware cycle for signs of wider volatility.