10% daily stock price limit starts June 1: FSC
The Financial Supervisory Commission ( FSC, ) said yesterday it will widen the daily stock fluctuation limit from 7 to 10 percent on June 1, three months ahead of schedule.
Earlier this year, the FSC announced a plan to allow daily stock fluctuations within a 10-percent range, up from the long-standing 7 percent, starting on Aug. 3. The Taiwan Stock Exchange (
), the Taipei Exchange ( ), the Taiwan Futures Exchange (
) and other related units have agreed to an earlier implementation on June 1, the FSC’s Securities and Futures Bureau ( ) said yesterday.
As a complementary measure to control risk, the FSC will raise the account collateral maintenance ratio from 120 percent to 130 percent starting May 4.
The financial regulatory body said it is coordinating with Taiwan’s securities firms to prepare technical adjustments, informational manuals and a media campaign for investors ahead of implementation.
These measures are part of the FSC’s “ascension plan” ( ), a package of stock market stimulus measures that promulgated on Feb. 3.
The package includes 15 projects — including a reform on exchange- traded funds and an international crowd-sourcing platform — that are slated for launch throughout the year.
The FSC’s ascension plan is aimed at aligning Taiwan with international practices and encouraging investors to keep funds in the local market, according to FSC Chairman Tseng Ming-chung ( ).
FSC on the AIIB
Also yesterday, the FSC addressed Taiwan’s bid to join the China-led Asian Infrastructure Investment Bank (AIIB, ).
The Executive Yuan’s Mainland Affairs Council ( ) yesterday submitted Taiwan’s formal declaration of interest in joining the AIIB, a multilateral Beijing-led financial institution.
Based on its own assessment, the FSC believes that AIIB membership would serve Taiwan’s economic interests, Tseng said yesterday.
The AIIB is an international financial institution — if Taiwan is able to join, domestic banks can participate in a wider range of syndicated loans and integrate deeper into banking network, Tseng said.
The FSC chairman was speaking on the sidelines of an awards ceremony in Taipei by Global Views Magazine ( ).
The AIIB, which mainly funds infrastructure projects in less-developed regions of Asia, will provide business opportunities to Taiwan’s construction and construction engineering sectors, Tseng said.