The Taiwan Stock Exchange (TWSE) has joined forces with Zurich-headquartered financial giant Credit Suisse to promote fundamentally sound Taiwan-listed companies to global investors.
The TWSE, which operates the local main board, and Credit Suisse have jointly launched an investment forum that kicked off Wednesday and will run through Friday in Taipei, as part of the exchange's efforts to encourage investors to park their funds in the local equity market.
It is the eighth time the TWSE and Credit Suisse have worked together to hold such a forum, focusing on healthy corporations in Taiwan in a bid to boost investors' understanding of Taiwan's capital market.
During the three-day forum, representatives from Taiwan's semiconductor, consumer electronics, biotech, telecommunications and financial firms will meet with investors, including more than 260 institutional investors, the TWSE said.
The exchange said that the forum is expected to provide Taiwan-listed firms and potential investors with a good opportunity for face-to-face exchanges.
Speaking at a luncheon during the forum, TWSE President Lee Chi-hsien (???) said that Taiwan's capital market is stable, with many listed companies enjoying good fundamentals. Lee said that these listed companies, as a whole, have posted profits for three consecutive years.
According to Lee, 78 percent of the listed companies on the local main board were profitable in the second quarter of this year, while 57 percent of them witnessed their earnings per share in the April-June period improving from a year earlier.
As of the end of August, Lee said, the average price-to-earnings (PE) ratio on the local main board stood at 16.9, in line with the PE ratios recorded by its counterparts in the region, but the average dividend yield here hit 4 percent, one of the highest levels in the world.
The data shows that the relatively low valuation in the local equity market has made local equities attractive to foreign investors, Lee said. Currently, foreign institutional investors account for 40.5 percent of the total market capitalization of the local main board, the TWSE data indicates.
The TWSE said that the exchange has held similar forums in Singapore, Hong Kong and Malaysia, as well as in the Taiwan market so far this year, to brief investors at home and abroad about the local capital market.
The number of participants in the ongoing conference has hit a five-year high, serving as further evidence that the local equity market has drawn strong interest from investors.
Source: Focus Taiwan News Channel