Taiwan’s stock exchange is expecting applications for new share listing to increase by more than 50% this year as it seeks to diversify from its reliance on the technology sector.

Sherman Lin, chairman and chief executive officer of the Taiwan Stock Exchange, estimates that initial public offering applications will reach 40 this year — the most since 2013 — with firms from the electric vehicle, cloud computing and biotech sectors leading the rise. Requests for new share sales on its innovation board will likely double after only eight companies applied in 2022.

Technology “is the driving engine in Taiwan but there are a lot of industries that are below the radar,” Lin said in an interview with Bloomberg on Monday. “We hope to attract these hidden champions to our stock market and showcase them to the global market.”

Chipmaker Taiwan Semiconductor Manufacturing Co. dominates Taiwan’s equity market with 28% weighting in the benchmark Taiex Index. That makes the gauge susceptible to large price movements in the stock.

With exports falling for 10 consecutive months due to weak global demand for its technology products, investors are reassessing their portfolios. A recent sell-down in tech companies has driven net selling of Taiwan stocks to its highest in a year. Global funds withdrew $4.4 billion from Taiwanese equities in the two weeks through July 8.

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The index rebounded Tuesday after a four-day decline, supported by a climb of as much as 1.6% in TSMC. That takes gains for the year to more than 19%, making the gauge among the best performers in Asia. Net inflows for the year stood at $8.2 billion.

The bourse has reformed its industry classification to help widen the diversification of firms on the exchange. It is also working on enhancing its global image and improving information accessibility for traders in an effort to draw more foreign investors.

“There are signs that we can be less pessimistic about the future,” said Lin, adding that the stock market reflects expectations that the economy will “rebound” this year.

Lin is also preparing to visit New York and Boston in September — his first official trip since taking the helm in 2022 — to court foreign investors who account for 40% of Taiwan’s stock market value. He plans to travel to Europe and the UK next year.

--With assistance from Filipe Pacheco and Yvonne Man.

(Updates with Taiex index and TSMC price moves in sixth paragraph.)