TAIPEI (TVBS News) — The Financial Supervisory Commission (FSC, 金管會) announced on Wednesday (July 3) that future fluctuations in Taiwan's stock market will be influenced by two major international factors: the anticipated U.S. interest rate cut in September and the U.S. presidential election at the end of the year.
FSC Chairperson Peng Jin-lung (彭金隆) emphasized that stock market volatility is inevitable while the FSC oversees the market. He added that the FSC focuses on maintaining robust institutional frameworks and will not predict future market trends but will monitor them closely.
Peng noted that Taiwan's stock market performance is linked to the country's economic fundamentals, highlighting strong export performance. The National Development Council (國發會) has also reported two consecutive yellow lights on the economic signal, indicating ongoing support for Taiwan's economy.
During an interpellation session at the Legislative Yuan's Finance Committee (財委會), Peng analyzed that Taiwan's stock market has a price-to-earnings ratio of around 22 times and an average dividend yield of 2.5%. In comparison, the U.S. market has a price-to-earnings ratio of 24.84 times, and Hong Kong's stands at 11.24 times.