The Impact of The Cross-Straits Political and Economic Conditions on Taiwan’s Stock Market

• Main Authors: Li-Syun Wang, 王麗薰
• Other Authors: Hao-LinYuan
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/68983642990724803003

碩士 === 國立中興大學 === 國際政治研究所 === 94 === “Stock market comes the economy”; therefore, market volatility is the index of financial volatility as financial volatility is the index of economic activity. From 1987, it was getting frequently on the cross-strait interflow after published of visiting relatives to Mainland China. However, because of the gap of policy viewpoint and the conflict of national sovereignty, the development of economy and the situation of nation between the R.O.C and P.R.O.C. is unstable obviously, and effect the price of stocks and bonds considerably. The thesis finds that economic stability is the precondition of political stability. It is obviously that Taiwan is in a venerable condition, because of its security concerned and highly dependent from foreign trade. Once, when it comes to the situation of deadlock between Taiwan and Mainland China, all of the political activity in China will strongly crash the stock market in Taiwan. Secondly, because of the political uncertainty, it is unfavorable for the environment of domestic investment, and it is reduced the willing from the international investment. As the result, the stock market is obviously affected by political factors in Taiwan. Finally, based on the political, economic, and military conditions cross strait, the thesis proposes the following conclusions: First, the stock market is going down gradually due to the significant politic-economic events: Next, because of economic globalization, the stock market is affected considerably by the cross strait economic relations. In sum, the economic development in the future will depend on the trend of political relations between two sides. If we can improve the relationship, we can combine the resource then, and then increase the international competitive. The thesis argues that it can be well used from Taiwanese business man, and create more commercial opportunity; second, in order to attract foreign investments, we can use the innate capital market experience from Hong Kong; and finally, if we can command the huge home market in China, Taiwan will play significant role in globalized world.