Uncertainty from the second term of US President Donald Trump is expected to become a regular theme, haunting the capital market this year, Financial Supervisory Commission Chairman Peng Jin-lung (彭金隆) said yesterday.
Trump’s economic policies are expected to dictate the financial markets, while the US Federal Reserve will likely adjust interest rates and impact Taiwan’s foreign exchange and stock markets, Peng said at a news conference in New Taipei City.
The commission will continue to pay close attention to the conditions of the local capital market, but it will not make any predictions on market performances, he said.
Photo: CNA
Still, Peng said he remained “cautiously optimistic” about Taiwan’s financial market this year, urging the local financial industry to be more alert to risks, improve its operations, and eventually return benefits to society, such as by raising employees’ wages or increasing benefits for them.
Riding the waves of sound fundamentals, the local financial industry, which compromises the banking, securities and insurance sectors, raked in NT$1.02 trillion (US $31.1 billion) in combined net profit in the first 11 months of last year, up 44.15 percent from a year earlier and topping the NT$1 trillion mark for the first time, Peng said.
In addition, the local capital market also showed its strength, with the TAIEX soaring 28.47 percent last year, the highest gain among the markets in Asia, as the average daily turnover reached NT$412.4 billion, up 46.65 percent from 2023, statistics compiled by the commission showed.
Meanwhile, the FSC is exploring the possibility of requiring financial holding firms initiating a tender offer to acquire another firm to use all cash during the initial stage of the acquisition, Peng said.
This measure aims to prevent arbitrage, which could cause market volatility and disrupt market order, he said.
The commission is also considering the possibility of raising the current 10 percent threshold for financial holding firms targeted by buyers during the first stage of an acquisition deal, Peng said.
The FSC will continue engaging with the industry regarding the rule changes and is likely to announce the adjustments after the nine-day Lunar New Year holiday, which begins on Saturday, he added.
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