The main purpose of the research project is to establish an index measuring the internationalization of capital markets so as to apply the index in measuring the level of internationalization in Taiwan’s capital markets. In addition, the authors would also like to apply the index in the adjacent countries’ capital markets and compare it with Taiwan to find out why the capital markets in Taiwan are not internationalized enough. In the conclusion, the author has concluded that the capital markets in Taiwan are facing bottlenecks in their developments. This is especially true if we look at the overall indicators that are designed by the author to measure the level of globalization in capital markets in this paper. In recent years, Mainland China is gradually outpacing Taiwan in terms of the competitiveness of capital markets. This has revealed the fact that Taiwan is losing its edge in capital markets. The competent government agencies must coordinate policies, strive to meet the needs of the markets, streamline the IPO process and ensure the liquidity capital markets. In addition, the competent government agencies should make use of their own advantages, such as the relatively low cost in pushing for the listing of companies in TAIEX /OTC, dynamism in stock markets, the ability to attract foreign investors who are interested in the greater Chinese markets, great pools of financial talents, and so on, to fully implement the government’s opening policies toward Mainland China in order to effectively elevate the competitiveness of Taiwan’s capital markets.