Li Shude, Chairman of the Stock Exchange, delivered a public welfare speech on Hong Junpei Culture and Education Foundation.

Li Shude, Chairman of the Stock Exchange, delivered a public welfare speech on Hong Junpei Culture and Education Foundation.

(Taiwan Business Daily News) Li Shu-de, chairman of the Stock Exchange and chairman of the General Finance Association, pointed out a few days ago that as Taiwan stocks are moving towards 2014, current stocks and warrants will appear on the market one after another this year, which will heat up the market. Li Shude said that with the gradual adjustment of various laws and regulations, the stock market will be able to return to the market for self-development. In 2014, diversified commodities will also be in place step by step, and many commodities and regulations will be "natural" one after another.

In order to let the public understand the relationship between the current operation of the stock exchange and the market, Li Shude, chairman of the Stock Exchange and chairman of the General Finance Association, gave a wonderful speech to the audience at the Chiang Kai-shek Memorial Hall on Sunday at the invitation of the Taiwan Business Daily and the Hong Junpei Culture and Education Fellowship Association. Many listeners are aimed at the professionalism of Chairman Li Shude, hoping to explore the complex system handed over to the market.

Li Shu-teh, chairman of the Stock Exchange, does not use the way of "reporting signs" or "reporting trends." instead, he starts from the themes of Taiwan's capital market stability, recent development, and the degree of internationalization, and provides a lot of objective data and pragmatic speeches. It is hoped that after the public has sufficient knowledge, they can have a basis for self-judgment, in case they fail in the stock market with the boom.

He said that the proportion of Taiwan's capital market in the financial market is increasing year by year, while the market capitalization of Taiwan stocks accounts for a high proportion of GDP, so the capital market is the window of the economy, not only in Taiwan, but also in highly international cities.

Li Shude, chairman of the Stock Exchange, delivered a public welfare speech: invest and do your homework before you start.

A sound capital market can serve as a bridge between savers and investors in society and promote economic development. Recently, with the liberalization of financing and securities industry, the growth rate of direct financing is much faster than that of indirect financing, which makes the capital market play an important role in communicating corporate financing and private investment activities. The role of the stock exchange is in the middle.

Li Shude, chairman of the Stock Exchange, said that there are five trading markets in Taiwan, including listing, listing, counter building, counter creation and mass fund-raising. There are 1400 listed companies and more than 700. he is thinking about how to integrate listed companies and promote the Baodao index to better represent Taiwan's capital market and even its due trading volume.

In reality, countries around the world have different financial systems, so it is difficult to apply a relatively unified model to generalize. In the structure of the securities market, the stock exchange plays the most important role, but the pivot of the whole securities market. Its functions are to create a continuous market, determine a fair price, assist enterprises to raise funds, predict economic changes, provide complete information, promote the disclosure of financial business information of listed companies, and protect the investing public. Li Shude pointed out that exchange rates, interest rates, or prices are the prices of money, and the mutual traction of the three prices will make their impact on the economy more complicated. For example, the central bank uses a low interest rate policy to keep the exchange rate at a relatively low level, so as to lower export prices, increase the competitiveness of Taiwan products, and at the same time raise import costs, reduce imports, and increase the trade surplus. However, when import prices rise, domestic prices will be affected more or less, and when domestic prices rise, the cost of production and export will rise, and the advantages brought about by the devaluation of the Taiwan dollar will be offset.

Similarly, when domestic interest rates are too low, the returns of capital owners are reduced, international interest rates are high, and domestic capital outflows will put upward pressure on domestic interest rates. If the central bank continues to adopt loose monetary policy, the result may be that the central bank provides funds for investors to use abroad. If the central bank does not take any action, interest rates will rise, funds will flow back, and the exchange rate of the Taiwan dollar will rise.

In other words, there is a natural equilibrium between internal and external economy. Artificially using policies to distort and change the equilibrium between the prices of the three currencies will make the economy make all kinds of adjustments in a state of imbalance, and finally have to pay a price. Therefore, a sound market system and maintaining market justice is the only goal of the stock exchange.

As a result, Li Shude, chairman of the Stock Exchange, said that the Stock Exchange took the lead in launching current stocks, made efforts to launch warrants in the first half of the year, and proposed to relax the restrictions on the number of securities borrowed. The goal this year is to promote diversified commodities and give investors more choices, but the new products will never affect the existing market.

Hong Junpei Culture and Education Foundation 103 commonweal speech